Company: SIDU
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010989
Chunk: 39

Company: Sidus Space Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 39
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 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 (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

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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