Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 224

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 224
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-board technologies.

According to a McKinsey
report published in January 2025, the space economy is projected to reach $1.8 trillion by 2035, up from $630 billion in 2023, with an
average annual growth rate of 9%, outpacing global GDP growth. This growth is expected to be driven by satellites, increased government
space budgets, and new applications and industries in space exploration.

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The small satellite market
is also experiencing substantial growth. According to The Business Research Company and a 2025 Global Market Insights report, the global
small satellite market size was valued at $6.9 billion in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 16.4%
from 2025 to 2034, reaching approximately $30.6 billion by 2034. This growth is attributed to factors such as cost-effectiveness in space
missions, advances in miniaturization, rapid development cycles, improved access to space, and the commercialization of space operations.

Private investment in the
commercial space industry has surged, leading to the emergence of new companies reinventing major elements of the traditional space industry,
including human spaceflight, satellites, and launch services, as well as unlocking entirely new market segments. Government agencies
have recognized the value of the private commercial space industry and have become increasingly supportive and reliant on private companies
to catalyze innovation and advance national space objectives. In the United States, this is evidenced by notable policy initiatives and
the growing share of space activities conducted by commercial contractors.

Overall, the space economy
is poised for significant growth, with both established and emerging players contributing to an increasingly dynamic and competitive
landscape.

Launch Market

Historically, access to
space was constrained by high capital requirements, with launch costs serving as the primary bottleneck for orbital activities. Launch
availability—adequate for traditional, large-scale missions occurring only a few times a year—was often insufficient and
limiting for operators of small satellites. While emerging launch providers have aimed to increase launch frequency and flexibility for
smallsat missions, financial barriers have continued to pose challenges for new entrants.

Today, the landscape is
shifting rapidly. After years of limited launch opportunities, small satellites now benefit from a wider range of launch solutions, including
dedicated small launch vehicles, rideshare programs, brokers, and deployment systems. According to Euroconsult, the small satellite launch
market—valued at $7.