Company: SIDU
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001742
Chunk: 1301

Company: Sidus Space Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1301
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 imaging, Internet-of-Things (IoT)/Machine-to-Machine
(M2M) communications, 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.

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