Company: SIDU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024043
Chunk: 45

Company: Sidus Space Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 45
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 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 (weighing