Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 843

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 843
---
 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 (smallsats). According
to Euroconsult, smallsats have become more compact over the past few years while enhancing their performance. Technological advancements
have expanded their mission capabilities, making them more resilient, effective, and cost-effective. This miniaturization trend allows
customers to choose between lighter satellites with unchanged capabilities or larger, more powerful satellites offering greater functionalities.
Key technical enablers include:

●Extended
                                            use of electric propulsion

●Miniaturization
                                            of attitude sensors

●Improvements
                                            in solar cell and battery efficiency

●Commercial
                                            off-the-shelf (COTS) solutions for bus electronics

●3D
                                            printing technologies

The demand for large geosynchronous
satellites has declined as companies focus on deploying constellations of smaller, cost-effective broadband satellites in low and medium
Earth orbits. Advancements in space-related sectors, particularly computational technologies and data analytics, have facilitated the
miniaturization of satellite systems, thereby enhancing the market. Consequently, smallsats now provide operational services previously
exclusive to larger satellites. Euroconsult projects that approximately 26,104 smallsats (under 500 kg) will be launched between 2023
and 2032, averaging a daily launch mass of 1.5 tons over the decade.

Moreover, this market growth
has led to the emergence of new segments, such as nanosatellites (weighing less than 10 kg) and microsatellites