India - Travel Services Market by Mode Of Booking and Service - Forecast and Analysis 2023-2027
| Published: Oct 2023 | Pages: 136 | SKU: IRTNTR40267 |
India - Travel Services Market Report 2023-2027
The India - Travel Services Market size is estimated to grow by USD 13.46 billion accelerating at a CAGR of 11.72% between 2022 and 2027. In recent years, India has seen significant growth in its travel services market due to increasing tourism and improved infrastructure. Popular travel services in India include hotel accommodations, transportation, tour packages, and travel agency services. The Indian government has taken initiatives to promote tourism by easing visa regulations and developing tourist-friendly policies.
Our market trends and analysis report offers an in-depth analysis of market drivers, trends, opportunities, challenges, and restraints, with segmentation by Mode Of Booking (online and offline), Service (domestic flight services, hotel accommodation services, rail ticket services, cab services, and others). Additionally, Technavio provides valuable insights through value chain analysis, parent market analysis, Porter’s Five analysis, and vendor analysis. The market growth analysis report also includes a thorough analysis of historical market data from 2017 to 2021.
Market Overview
The market is a dynamic sector within the broader travel industry, encompassing various elements like travel agents, Indian tourism, and emerging trends. India's travel market reflects the ever-evolving landscape of the industry, with a focus on innovative travel agency trends and marketing strategies. The service industry plays a crucial role in shaping the Indian travel market, emphasizing the importance of tailored and efficient travel services. This overview highlights India's position as a key player in the market, showcasing the nation's commitment to excellence and customer satisfaction.
Market Size and Forecast:
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Trends and Growth Drivers, Challenges
Key Trends
One of the major market trends is the technological advances in mobile-based and website-based travel service platforms. Numerous providers in the market are introducing innovative technologies to maintain market share and offer customers new and advanced services. Market players are integrating advanced technologies into their service portals, including websites and mobile apps, featuring advanced search filters and voice assistance.
For instance, Cleartrip, a leading player in the travel service market in India, incorporates Alexa (Amazon's voice assistance) skills into its service platform, enabling users to easily voice search air travel options. The company also offers Cleartrip for Work, a transformative solution providing individual travelers with GST numbers and access to unlimited corporate fares on flights, including benefits like unlimited cashback, complimentary in-flight meals, zero trip modification charges, and reduced cancellation and seat selection fees. These advancements are expected to drive growth in India travel services marketing throughout the forecast period.
Significant Drivers
The growth of the market is driven by the rising influx of international tourists. Inbound tourism in India has experienced rapid growth, fueled by travelers visiting for business, leisure, and sports purposes. The presence of multinational companies further contributes to increased corporate visits to India.
Additionally, the tourism industry in India is expanding, leading to enhanced infrastructure for air, rail, and road connectivity to cities. Government initiatives aimed at promoting tourism further boost the industry. Tourists from regions such as North America, Europe, and the Pacific contribute to the positive impact on the market. These factors are anticipated to propel India travel service market growth throughout the forecast period.
Market Challenges and Opportunities
Fierce competition leading to price wars poses a significant challenge to the growth of the market. Despite the dominance of global players, they face stiff competition from various global, regional, and local counterparts. To overcome this challenge, market players need substantial investments in research and development to innovate a diverse range of services catering to different occasions and end-users, including holiday packages for young individuals, couples, and family trips.
The heightened competition in the market is likely to trigger price wars and the trend of substantial discounts and offers by certain players, further complicating the market landscape. These factors have a detrimental impact on the growth of the market, hindering its progress throughout the forecast period.
Government Regulations and Policies
The market is a vibrant sector with immense potential, fueled by the world's demand for diverse travel experiences. The Indian government plays a pivotal role in regulating and shaping this industry through various policies. With a focus on promoting tourism, India has implemented measures to attract visitors from countries like China and other nations worldwide. Travel agencies and operators operating in the Indian market are subject to government regulations that aim to ensure the growth and sustainability of the sector. The hospitality industry also benefits from these policies, enhancing the overall travel experience for tourists. India's tourism industry has witnessed significant developments, reflecting the government's commitment to fostering a robust travel ecosystem. As the travel agencies industry evolves, trends in marketing services and customer experiences become crucial, contributing to India's position as a key player in the market.
Online Booking Platforms Segmentation
The online segment is estimated to witness significant growth during the forecast period. Online platforms and mobile apps have played a crucial role in the growth of the market, making it easier for travelers to book flights, hotels, and other services. There is an increasing preference among consumers for booking travel services through the online mode due to the convenience offered by these platforms thereby fuelling the sales generated through this segment. Another factor that is fuelling the significant shift is the increasing penetration of and the geographical reach of online travel service providers such as MakeMyTrip, TripAdvisor, IRCTC, and Yatra.
By Mode of Booking
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The online segment, valued at USD 11.79 billion in 2017, is the largest segment in the India travel services market. Its growth is significantly influenced by a robust infrastructure supporting online travel services penetration. Factors such as high Internet penetration and widespread smartphone use contribute to this growth. In 2020, India had over 749 million Internet users, and a considerable number of consumers in the country base their purchase decisions on online research through websites, blogs, and social media.
Prominent India travel service market player TripAdvisor, for example, provides a comprehensive range of blogs and research on its website, offering detailed information about airlines, hotels, travel destinations, activities, and restaurants across India. These factors are expected to drive the growth of the online segment, consequently fueling overall growth in the market throughout the forecast period.
Key Players in the Industry
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
ANI Technologies Pvt. Ltd., Booking Holdings Inc., Cleartrip Pvt. Ltd., Cox and Kings Ltd., Easy Trip Planners Ltd., Expedia Group Inc., Indian Railway Catering and Tourism Corp. Ltd., ITC Ltd., Kesari Tours Pvt. Ltd., Le Travenues Technology Ltd, Mahindra and Mahindra Ltd., MakeMyTrip Ltd., Oravel Stays Ltd., The Travel Corp, Thomas Cook (India) Ltd., Treebo Hotels, TripAdvisor Inc., Uber Technologies Inc., Yatra Online Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Customer Preferences and Behavior
The market growth and forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Segment Overview
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
- Mode Of Booking Outlook (USD Billion, 2017 - 2027)
- Online
- Offline
- Service Outlook (USD Billion, 2017 - 2027)
- Domestic flight services
- Hotel accommodation services
- Rail ticket services
- Cab services
- Others
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Market Report Scope |
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Report Coverage |
Details |
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Page number |
136 |
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Base year |
2022 |
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Historic period |
2017 - 2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 11.72% |
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Market growth 2023-2027 |
USD 13.46 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
11.23 |
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Regional analysis |
India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbnb Inc., ANI Technologies Pvt. Ltd., Booking Holdings Inc., Cleartrip Pvt. Ltd., Cox and Kings Ltd., Easy Trip Planners Ltd., Expedia Group Inc., Indian Railway Catering and Tourism Corp. Ltd., ITC Ltd., Kesari Tours Pvt. Ltd., Le Travenues Technology Ltd, Mahindra and Mahindra Ltd., MakeMyTrip Ltd., Oravel Stays Ltd., The Travel Corp, Thomas Cook (India) Ltd., Treebo Hotels, TripAdvisor Inc., Uber Technologies Inc., and Yatra Online Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
What are the Key Data Covered in this Market Research Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the market between 2023 and 2027
- Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming trends and changes in consumer behaviour
- Growth of the market industry across India
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
- 1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by Mode of Booking
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Service
- Exhibit 06: Executive Summary – Chart on Vendor Market Positioning
2 Market Landscape
- 2.1 Market ecosystem
- Exhibit 07: Parent market
- Exhibit 08: Market Characteristics
3 Market Sizing
- 3.1 Market definition
- Exhibit 09: Offerings of vendors included in the market definition
- 3.2 Market segment analysis
- Exhibit 10: Market segments
- 3.3 Market size 2022
- 3.4 Market outlook: Forecast for 2022-2027
- Exhibit 11: Chart on India - Market size and forecast 2022-2027 ($ billion)
- Exhibit 12: Data Table on India - Market size and forecast 2022-2027 ($ billion)
- Exhibit 13: Chart on India: Year-over-year growth 2022-2027 (%)
- Exhibit 14: Data Table on India: Year-over-year growth 2022-2027 (%)
4 Historic Market Size
- 4.1 Travel services market in India 2017 - 2021
- Exhibit 15: Historic Market Size – Data Table on travel services market in India 2017 - 2021 ($ billion)
- 4.2 Mode Of Booking Segment Analysis 2017 - 2021
- Exhibit 16: Historic Market Size – Mode Of Booking Segment 2017 - 2021 ($ billion)
- 4.3 Service Segment Analysis 2017 - 2021
- Exhibit 17: Historic Market Size – Service Segment 2017 - 2021 ($ billion)
5 Five Forces Analysis
- 5.1 Five forces summary
- Exhibit 18: Five forces analysis - Comparison between 2022 and 2027
- 5.2 Bargaining power of buyers
- Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027
- 5.3 Bargaining power of suppliers
- Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2022 and 2027
- 5.4 Threat of new entrants
- Exhibit 21: Threat of new entrants – Impact of key factors in 2022 and 2027
- 5.5 Threat of substitutes
- Exhibit 22: Threat of substitutes – Impact of key factors in 2022 and 2027
- 5.6 Threat of rivalry
- Exhibit 23: Threat of rivalry – Impact of key factors in 2022 and 2027
- 5.7 Market condition
- Exhibit 24: Chart on Market condition - Five forces 2022 and 2027
6 Market Segmentation by Mode of Booking
- 6.1 Market segments
- Exhibit 25: Chart on Mode of Booking - Market share 2022-2027 (%)
- Exhibit 26: Data Table on Mode of Booking - Market share 2022-2027 (%)
- 6.2 Comparison by Mode of Booking
- Exhibit 27: Chart on Comparison by Mode of Booking
- Exhibit 28: Data Table on Comparison by Mode of Booking
- 6.3 Online - Market size and forecast 2022-2027
- Exhibit 29: Chart on Online - Market size and forecast 2022-2027 ($ billion)
- Exhibit 30: Data Table on Online - Market size and forecast 2022-2027 ($ billion)
- Exhibit 31: Chart on Online - Year-over-year growth 2022-2027 (%)
- Exhibit 32: Data Table on Online - Year-over-year growth 2022-2027 (%)
- 6.4 Offline - Market size and forecast 2022-2027
- Exhibit 33: Chart on Offline - Market size and forecast 2022-2027 ($ billion)
- Exhibit 34: Data Table on Offline - Market size and forecast 2022-2027 ($ billion)
- Exhibit 35: Chart on Offline - Year-over-year growth 2022-2027 (%)
- Exhibit 36: Data Table on Offline - Year-over-year growth 2022-2027 (%)
- 6.5 Market opportunity by Mode of Booking
- Exhibit 37: Market opportunity by Mode of Booking ($ billion)
- Exhibit 38: Data Table on Market opportunity by Mode of Booking ($ billion)
7 Market Segmentation by Service
- 7.1 Market segments
- Exhibit 39: Chart on Service - Market share 2022-2027 (%)
- Exhibit 40: Data Table on Service - Market share 2022-2027 (%)
- 7.2 Comparison by Service
- Exhibit 41: Chart on Comparison by Service
- Exhibit 42: Data Table on Comparison by Service
- 7.3 Domestic flight services - Market size and forecast 2022-2027
- Exhibit 43: Chart on Domestic flight services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 44: Data Table on Domestic flight services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 45: Chart on Domestic flight services - Year-over-year growth 2022-2027 (%)
- Exhibit 46: Data Table on Domestic flight services - Year-over-year growth 2022-2027 (%)
- 7.4 Hotel accommodation services - Market size and forecast 2022-2027
- Exhibit 47: Chart on Hotel accommodation services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 48: Data Table on Hotel accommodation services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 49: Chart on Hotel accommodation services - Year-over-year growth 2022-2027 (%)
- Exhibit 50: Data Table on Hotel accommodation services - Year-over-year growth 2022-2027 (%)
- 7.5 Rail ticket services - Market size and forecast 2022-2027
- Exhibit 51: Chart on Rail ticket services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 52: Data Table on Rail ticket services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 53: Chart on Rail ticket services - Year-over-year growth 2022-2027 (%)
- Exhibit 54: Data Table on Rail ticket services - Year-over-year growth 2022-2027 (%)
- 7.6 Cab services - Market size and forecast 2022-2027
- Exhibit 55: Chart on Cab services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 56: Data Table on Cab services - Market size and forecast 2022-2027 ($ billion)
- Exhibit 57: Chart on Cab services - Year-over-year growth 2022-2027 (%)
- Exhibit 58: Data Table on Cab services - Year-over-year growth 2022-2027 (%)
- 7.7 Others - Market size and forecast 2022-2027
- Exhibit 59: Chart on Others - Market size and forecast 2022-2027 ($ billion)
- Exhibit 60: Data Table on Others - Market size and forecast 2022-2027 ($ billion)
- Exhibit 61: Chart on Others - Year-over-year growth 2022-2027 (%)
- Exhibit 62: Data Table on Others - Year-over-year growth 2022-2027 (%)
- 7.8 Market opportunity by Service
- Exhibit 63: Market opportunity by Service ($ billion)
- Exhibit 64: Data Table on Market opportunity by Service ($ billion)
8 Customer Landscape
- 8.1 Customer landscape overview
- Exhibit 65: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
9 Drivers, Challenges, and Trends
- 9.1 Market drivers
- 9.2 Market challenges
- 9.3 Impact of drivers and challenges
- Exhibit 66: Impact of drivers and challenges in 2022 and 2027
- 9.4 Market trends
10 Vendor Landscape
- 10.1 Overview
- 10.2 Vendor landscape
- Exhibit 67: Overview on Criticality of inputs and Factors of differentiation
- 10.3 Landscape disruption
- Exhibit 68: Overview on factors of disruption
- 10.4 Industry risks
- Exhibit 69: Impact of key risks on business
11 Vendor Analysis
- 11.1 Vendors covered
- Exhibit 70: Vendors covered
- 11.2 Market positioning of vendors
- Exhibit 71: Matrix on vendor position and classification
- 11.3 Airbnb Inc.
- Exhibit 72: Airbnb Inc. - Overview
- Exhibit 73: Airbnb Inc. - Product / Service
- Exhibit 74: Airbnb Inc. - Key offerings
- 11.4 ANI Technologies Pvt. Ltd.
- Exhibit 75: ANI Technologies Pvt. Ltd. - Overview
- Exhibit 76: ANI Technologies Pvt. Ltd. - Product / Service
- Exhibit 77: ANI Technologies Pvt. Ltd. - Key offerings
- 11.5 Booking Holdings Inc.
- Exhibit 78: Booking Holdings Inc. - Overview
- Exhibit 79: Booking Holdings Inc. - Business segments
- Exhibit 80: Booking Holdings Inc. - Key news
- Exhibit 81: Booking Holdings Inc. - Key offerings
- Exhibit 82: Booking Holdings Inc. - Segment focus
- 11.6 Cleartrip Pvt. Ltd.
- Exhibit 83: Cleartrip Pvt. Ltd. - Overview
- Exhibit 84: Cleartrip Pvt. Ltd. - Product / Service
- Exhibit 85: Cleartrip Pvt. Ltd. - Key offerings
- 11.7 Cox and Kings Ltd.
- Exhibit 86: Cox and Kings Ltd. - Overview
- Exhibit 87: Cox and Kings Ltd. - Product / Service
- Exhibit 88: Cox and Kings Ltd. - Key offerings
- 11.8 Expedia Group Inc.
- Exhibit 89: Expedia Group Inc. - Overview
- Exhibit 90: Expedia Group Inc. - Business segments
- Exhibit 91: Expedia Group Inc. - Key offerings
- Exhibit 92: Expedia Group Inc. - Segment focus
- 11.9 Indian Railway Catering and Tourism Corp. Ltd.
- Exhibit 93: Indian Railway Catering and Tourism Corp. Ltd. - Overview
- Exhibit 94: Indian Railway Catering and Tourism Corp. Ltd. - Business segments
- Exhibit 95: Indian Railway Catering and Tourism Corp. Ltd. - Key offerings
- Exhibit 96: Indian Railway Catering and Tourism Corp. Ltd. - Segment focus
- 11.10 ITC Ltd.
- Exhibit 97: ITC Ltd. - Overview
- Exhibit 98: ITC Ltd. - Business segments
- Exhibit 99: ITC Ltd. - Key offerings
- Exhibit 100: ITC Ltd. - Segment focus
- 11.11 Kesari Tours Pvt. Ltd.
- Exhibit 101: Kesari Tours Pvt. Ltd. - Overview
- Exhibit 102: Kesari Tours Pvt. Ltd. - Product / Service
- Exhibit 103: Kesari Tours Pvt. Ltd. - Key offerings
- 11.12 Le Travenues Technology Ltd
- Exhibit 104: Le Travenues Technology Ltd - Overview
- Exhibit 105: Le Travenues Technology Ltd - Product / Service
- Exhibit 106: Le Travenues Technology Ltd - Key offerings
- 11.13 Mahindra and Mahindra Ltd.
- Exhibit 107: Mahindra and Mahindra Ltd. - Overview
- Exhibit 108: Mahindra and Mahindra Ltd. - Business segments
- Exhibit 109: Mahindra and Mahindra Ltd. - Key news
- Exhibit 110: Mahindra and Mahindra Ltd. - Key offerings
- Exhibit 111: Mahindra and Mahindra Ltd. - Segment focus
- 11.14 MakeMyTrip Ltd.
- Exhibit 112: MakeMyTrip Ltd. - Overview
- Exhibit 113: MakeMyTrip Ltd. - Business segments
- Exhibit 114: MakeMyTrip Ltd. - Key offerings
- Exhibit 115: MakeMyTrip Ltd. - Segment focus
- 11.15 Oravel Stays Ltd.
- Exhibit 116: Oravel Stays Ltd. - Overview
- Exhibit 117: Oravel Stays Ltd. - Product / Service
- Exhibit 118: Oravel Stays Ltd. - Key offerings
- 11.16 Thomas Cook (India) Ltd.
- Exhibit 119: Thomas Cook (India) Ltd. - Overview
- Exhibit 120: Thomas Cook (India) Ltd. - Business segments
- Exhibit 121: Thomas Cook (India) Ltd. - Key offerings
- Exhibit 122: Thomas Cook (India) Ltd. - Segment focus
- 11.17 Yatra Online Inc.
- Exhibit 123: Yatra Online Inc. - Overview
- Exhibit 124: Yatra Online Inc. - Business segments
- Exhibit 125: Yatra Online Inc. - Key offerings
- Exhibit 126: Yatra Online Inc. - Segment focus
12 Appendix
- 12.1 Scope of the report
- 12.2 Inclusions and exclusions checklist
- Exhibit 127: Inclusions checklist
- Exhibit 128: Exclusions checklist
- 12.3 Currency conversion rates for US$
- Exhibit 129: Currency conversion rates for US$
- 12.4 Research methodology
- Exhibit 130: Research methodology
- Exhibit 131: Validation techniques employed for market sizing
- Exhibit 132: Information sources
- 12.5 List of abbreviations
- Exhibit 133: List of abbreviations
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
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travel services market in india market
Key Questions Answered
- What are the key global market and the regional market share?
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- What are the key factors driving and challenging this market’s growth?
- Who are the key market vendors and their growth strategies?
- What are the latest trends influencing the growth of this market?
- What are the variables influencing the market growth in the primary regions?
- What are the factors influencing the growth of the parent market?
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