Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 38

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 38
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 defense-related uses, and more. Consequently, numerous operators have announced plans
for new satellite constellations, predominantly comprising small Low Earth Orbit (LEO) satellites rather than traditional large Geostationary
Orbit (GEO) satellites. This influx of new entrants across various segments has led to an evolving small satellite value chain, particularly
in launch services, downstream value-added applications, mergers and acquisitions, and consolidation among stakeholders.

The
rapid pace of innovation continues to drive the commercialization of space-based data, analytics, and insights, enhancing their relevance
to businesses, governments, and the public. The demand for space-derived data is growing rapidly, while the cost of accessing space is
decreasing. Key trends in the new space economy include the expansion of satellite constellations, increased availability of space-based
data, a shift in user demand toward analytics and insights, climate change adaptation, global security concerns, and advancements in
on-board technologies.

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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.

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