Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 637

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 637
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 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 $7.6 billion—is projected to grow by over 279% to reach $28.4 billion. However, a significant portion of
that market remains dominated by national programs and vertically integrated providers like SpaceX. Previously overlooked due to fragmented
demand and lower perceived profitability, the smallsat sector is now receiving increased attention, as launch supply adapts to meet rising
demand with greater responsiveness and innovation.

Small Satellite Market

Since 2018, the commercial
space market has experienced a significant paradigm shift, leading to an increased demand for small satellites (sm