Medical Cannabis (Marijuana) Market Analysis

ID: MRFR/MED/6896-CR

146 Pages

Rahul Gotadki

August 2021

Medical Cannabis Market Research Report By Application (Pain Management, Neurological Disorders, Cancer Treatment, Mental Health Disorders, Inflammatory Conditions), By Product Type (Flower, Oils, Tinctures, Edibles, Topicals), By Distribution Channel (Pharmacies, Online Stores, Dispensaries), By Formulation (Cannabinoid-Based, Herbal-Based, Synthetic) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Cannabis (marijuana) Drugs industry Forecast to 2035

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Summary Table of Contents Segmentation Methodology Download PDF

Market Analysis

In-depth Analysis of Medical Cannabis Market Industry Landscape

Doctors often recommend medical cannabis to patients undergoing chemotherapy to help alleviate nausea and vomiting. This plant-based medicine has gained approval for use in different parts of the world, not only for managing pain but also for addressing neurological conditions, boosting appetite, and treating various other medical issues. The National Institute on Drug Abuse defines medical cannabis as the use of the marijuana plant or its extracts to treat medical conditions.

The growth of the medical cannabis market is being significantly boosted by increased research and development activities. Both private companies and government organizations are providing financial support for research into cannabinoids, the active compounds in cannabis. This heightened interest in understanding cannabinoids is closely linked to the increasing occurrence of chronic diseases worldwide.

One notable factor contributing to the expansion of the medical cannabis market is the rising acceptance of cannabis-based medications. As more people recognize the potential benefits of these medications, there is a growing demand for them. Medical cannabis has shown effectiveness in managing pain, addressing neurological issues, and even increasing appetite in patients undergoing treatment.

The positive trajectory of the medical cannabis market is further fueled by advancements in the status of medical cannabis through clinical trials and regulatory decisions in developed nations. These trials and regulatory approvals enhance the credibility and acceptance of medical cannabis as a legitimate and effective form of treatment. This is a crucial factor in driving the market's growth in the coming years.

Despite these positive trends, there are challenges that the medical cannabis market faces. One significant obstacle is a lack of awareness about the benefits of medical cannabis. Many people may not be fully informed about the therapeutic potential of cannabis-based medications, leading to a slower adoption rate. Education and awareness campaigns are essential to bridge this gap and ensure that patients and healthcare providers are well-informed about the advantages of medical cannabis.

Market Highlights

Author

Rahul Gotadki

Assistant Manager

He holds an experience of about 7+ years in Market Research and Business Consulting, working under the spectrum of Life Sciences and Healthcare domains. Rahul conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. His expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc. In addition to the above, his other responsibility includes strategic tracking of high growth markets & advising clients on the potential areas of focus they could direct their business initiatives

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FAQs

What is the current valuation of the Medical Cannabis (marijuana) Market as of 2024?

The Medical Cannabis Market was valued at 18.74 USD Billion in 2024.

What is the projected market valuation for the Medical Cannabis (marijuana) Market in 2035?

The market is projected to reach a valuation of 49.99 USD Billion by 2035.

What is the expected CAGR for the Medical Cannabis (marijuana) Market during the forecast period 2025 - 2035?

The expected CAGR for the Medical Cannabis Market during the forecast period 2025 - 2035 is 9.33%.

Which application segment is expected to have the highest growth in the Medical Cannabis (marijuana) Market?

The Pain Management segment is anticipated to grow from 5.62 USD Billion in 2024 to 14.75 USD Billion by 2035.

What are the leading product types in the Medical Cannabis (marijuana) Market?

The leading product types include Flower, Oils, Tinctures, Edibles, and Topicals, with Flower projected to grow from 5.62 USD Billion to 14.99 USD Billion.

How does the distribution channel impact the Medical Cannabis (marijuana) Market?

Pharmacies, Online Stores, and Dispensaries are key distribution channels, with Pharmacies expected to grow from 7.5 USD Billion to 19.5 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per Market Research Future industry analysis, Medical Cannabis Market was estimated at 18.74 USD Billion in 2024. The Medical Cannabis (Marijuana) industry is projected to grow from 20.49 USD Billion in 2025 to 49.99 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 9.3% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The Medical Cannabis (marijuana) Market is experiencing robust growth driven by regulatory changes and increasing consumer awareness.

North America remains the largest market for medical cannabis, characterized by evolving regulations and heightened consumer interest. The Asia-Pacific region is emerging as the fastest-growing market, fueled by increasing acceptance and demand for medical cannabis products. Pain management continues to dominate the market, while the segment for neurological disorders is witnessing rapid growth due to rising awareness and research. Key market drivers include ongoing regulatory developments and a growing aging population seeking alternative treatment options.

Medical Cannabis Market

CAGR

9.33%

Market Size & Forecast

2024 Market Size	18.74 (USD Billion)
2035 Market Size	49.99 (USD Billion)
CAGR (2025 - 2035)	9.33%
Largest Regional Market Share in 2024	North America

Major Players

Canopy Growth Corporation (CA), Aurora Cannabis Inc. (CA), Curaleaf Holdings Inc. (US), Trulieve Cannabis Corp. (US), Green Thumb Industries Inc. (US), Cresco Labs Inc. (US), <a href="https://medmen.com/">MedMen Enterprises Inc</a>. (US), Harvest Health & Recreation Inc. (US)

Market Trends

The Medical Cannabis Market is currently experiencing a transformative phase characterized by evolving regulations and increasing acceptance among healthcare professionals. This shift appears to be driven by a growing body of research supporting the therapeutic benefits of cannabis for various medical conditions. As more jurisdictions legalize medical cannabis, the market is likely to expand, attracting a diverse range of stakeholders, including pharmaceutical companies, healthcare providers, and patients seeking alternative treatment options. Furthermore, the integration of advanced technologies in cultivation and distribution processes may enhance product quality and accessibility, thereby fostering consumer trust and market growth.

In addition, the Medical Cannabis Market seems to be influenced by changing consumer preferences, with an increasing demand for natural and holistic treatment methods. Patients are becoming more informed about their health choices, leading to a rise in the popularity of cannabis-based therapies. This trend suggests that the market could witness a diversification of product offerings, including oils, edibles, and topical applications, tailored to meet the specific needs of various patient demographics. As the landscape continues to evolve, ongoing research and development will likely play a crucial role in shaping the future of the Medical Cannabis Market, ensuring that it remains responsive to both medical advancements and consumer expectations.

Regulatory Developments

The Medical Cannabis Market is significantly shaped by ongoing regulatory changes across various regions. As governments reassess their stance on cannabis, new policies are emerging that facilitate access to medical cannabis for patients. This evolving legal framework may encourage more healthcare providers to consider cannabis as a viable treatment option, potentially leading to increased patient enrollment in medical cannabis programs.

Consumer Awareness and Education

There is a noticeable increase in consumer awareness regarding the benefits and uses of medical cannabis. Patients are actively seeking information about cannabis therapies, which may lead to a more informed patient base. This trend suggests that educational initiatives by healthcare professionals and organizations could further enhance understanding and acceptance of medical cannabis.

Product Innovation

The Medical Cannabis Market is witnessing a wave of product innovation, with companies developing new formulations and delivery methods. This trend indicates a growing emphasis on creating tailored solutions that address specific medical conditions. As research continues to uncover the therapeutic potential of cannabis, the market may see an expansion in product diversity, catering to a broader range of patient needs.

Medical Cannabis Market Market Drivers

Aging Population

The aging population is emerging as a significant driver of the Medical Cannabis Market. As the global demographic landscape shifts, an increasing number of individuals are seeking alternative therapies to manage age-related ailments. Conditions such as arthritis, chronic pain, and neurodegenerative diseases are prevalent among older adults, and medical cannabis has shown promise in alleviating symptoms associated with these conditions. Data indicates that individuals aged 65 and older represent one of the fastest-growing segments of medical cannabis users. This demographic shift is likely to spur demand for tailored products that address the specific health concerns of older patients. Furthermore, as healthcare systems adapt to accommodate the needs of an aging population, the integration of medical cannabis into treatment plans may become more commonplace. Consequently, the aging population is poised to significantly influence the trajectory of the Medical Cannabis Market.

Product Innovation

Product innovation is a driving force within the Medical Cannabis Market, as companies strive to meet the diverse needs of patients. The introduction of new formulations, delivery methods, and product types is reshaping the landscape. For instance, advancements in extraction technologies have led to the development of concentrated oils, edibles, and topicals, catering to varying preferences and medical conditions. Market data suggests that the segment of cannabis-infused edibles is projected to grow at a compound annual growth rate of over 20% in the coming years. This trend indicates a shift towards more palatable and discreet consumption options. Additionally, research into specific cannabinoid profiles and their therapeutic effects is fostering the creation of targeted products for conditions such as chronic pain and anxiety. Thus, continuous product innovation is likely to be a key driver of growth in the Medical Cannabis Market.

Regulatory Developments

The Medical Cannabis Market is experiencing a transformative phase due to evolving regulatory frameworks. Governments are increasingly recognizing the therapeutic potential of cannabis, leading to the legalization of medical cannabis in various jurisdictions. This shift is evidenced by the fact that as of October 2025, over 40 countries have enacted laws permitting the use of medical cannabis. Such regulatory advancements not only enhance patient access but also foster a more structured market environment. The establishment of clear guidelines for cultivation, distribution, and consumption is likely to attract investments and encourage research and development. Furthermore, regulatory bodies are beginning to implement quality control measures, which may enhance consumer confidence in medical cannabis products. This regulatory momentum appears to be a crucial driver for the growth of the Medical Cannabis Market.

Research and Development

Research and development (R&D) are critical components driving the Medical Cannabis Market forward. The increasing recognition of cannabis as a legitimate therapeutic option has spurred a wave of scientific inquiry into its medicinal properties. Numerous studies are underway to explore the efficacy of cannabinoids in treating various conditions, including epilepsy, multiple sclerosis, and cancer-related symptoms. As of October 2025, funding for cannabis research has seen a marked increase, with several governments and private entities investing in clinical trials and studies. This influx of research is likely to yield valuable insights that could lead to the development of new medical cannabis products and treatment protocols. Moreover, as the body of evidence supporting the therapeutic benefits of cannabis expands, it may facilitate further regulatory approvals and acceptance within the medical community. Thus, R&D is expected to play a pivotal role in shaping the future of the Medical Cannabis Market.

Consumer Awareness and Education

Consumer awareness and education play a pivotal role in shaping the Medical Cannabis Market. As more individuals seek alternative treatments for various health conditions, the demand for information regarding the benefits and risks of medical cannabis is surging. Educational initiatives by healthcare professionals and advocacy groups are instrumental in dispelling myths and providing evidence-based information. Surveys indicate that approximately 70% of potential users express a desire for more knowledge about medical cannabis. This growing awareness is likely to lead to increased acceptance and utilization of medical cannabis among patients. Moreover, as consumers become more informed, they may demand higher quality products, prompting manufacturers to innovate and adhere to stringent standards. Consequently, the emphasis on education and awareness is expected to significantly influence the trajectory of the Medical Cannabis Market.

Market Segment Insights

By Application: Pain Management (Largest) vs. Neurological Disorders (Fastest-Growing)

In the Medical Cannabis Market, <a href="https://www.marketresearchfuture.com/reports/pain-management-market-5975">Pain Management</a> stands out as the largest segment, capturing a significant portion of market share due to its widespread acceptance in treating chronic pain conditions. This segment's dominance is bolstered by increasing patient awareness and a growing body of research supporting the efficacy of cannabis in alleviating pain when compared to traditional opioid-based medications. Conversely, the Neurological Disorders segment is rapidly gaining traction, recognized for its potential to provide relief in conditions such as epilepsy and multiple sclerosis, attracting a surge of attention from both healthcare professionals and patients alike. Growth trends in the Medical Cannabis Market are primarily driven by evolving regulations and increased acceptance of medical cannabis in various treatment protocols. As research continues to support the therapeutic benefits of cannabinoids, sectors like Neurological Disorders are expected to thrive, fueled by ongoing clinical trials and the development of specialized formulations. Additionally, patient advocacy and positive media coverage contribute to changing perceptions, encouraging healthcare practitioners to integrate medical cannabis into treatment plans for various applications, thus expanding the market further.

Pain Management (Dominant) vs. Inflammatory Conditions (Emerging)

The Pain Management segment remains dominant within the Medical Cannabis Market, characterized by its established uses in the treatment of conditions such as arthritis, fibromyalgia, and neuropathic pain. Patients often prefer cannabis alternatives due to concerns about the side effects associated with traditional pain management therapies, thus solidifying its market position. Meanwhile, the Inflammatory Conditions segment is emerging with significant potential, as more patients and practitioners seek effective solutions for conditions like Crohn's disease and rheumatoid arthritis. As new studies validate the anti-inflammatory properties of cannabis, this segment is anticipated to grow exponentially, offering innovative formulations and targeted treatments to address unmet medical needs.

By Product Type: Flower (Largest) vs. Oils (Fastest-Growing)

Within the Medical Cannabis Market, the segment distribution is heavily influenced by consumer preferences and therapeutic needs. The Flower product type has established itself as the largest segment due to its traditional use and recognition among patients. However, Oils are gaining traction as consumers seek more concentrated forms of cannabis that offer ease of use and versatility, contributing to their rise in popularity.

Flower (Dominant) vs. Oils (Emerging)

The Flower segment has long been recognized for its role as the predominant choice among medical cannabis users, offering a familiar and effective method of consumption. It appeals to a wide demographic due to its direct and immediate effects. On the other hand, Oils are emerging as a significant alternative, favored for their potency and convenience. They cater to patients looking for discretion and ease of dosage, thus fostering a new consumer base that prioritizes health management without the stigmatization often associated with smoking.

By Distribution Channel: Dispensaries (Largest) vs. Online Stores (Fastest-Growing)

In the Medical Cannabis Market, distribution channels are critical for reaching consumers effectively. Dispensaries hold the largest share of the market, providing a physical location for customers to access a variety of cannabis products. This traditional channel remains favored by many consumers due to personalized service and immediate product availability. Meanwhile, online stores are rapidly gaining ground as a popular alternative, capturing the interest of tech-savvy consumers seeking convenience and extensive product choices.

Dispensaries (Dominant) vs. Online Stores (Emerging)

Dispensaries serve as the dominant distribution channel for medical cannabis, offering a personalized shopping experience to customers. They provide an extensive selection of products, with knowledgeable staff to assist with inquiries and guidance on usage. In contrast, online stores are emerging rapidly in this market, appealing to consumers who prefer the convenience of ordering from home. These platforms often provide detailed product information and competitive pricing. As online shopping continues to gain traction, both channels must adapt to changing consumer preferences, emphasizing customer service in dispensaries while focusing on user-friendly interfaces and efficient delivery for online stores.

By Formulation: Cannabinoid-Based (Largest) vs. Herbal-Based (Fastest-Growing)

The Medical Cannabis Market is witnessing a distinct market share distribution among its formulation segments, with Cannabinoid-Based formulations leading the way due to their extensive medicinal properties and established applications. Meanwhile, Herbal-Based formulations are becoming increasingly popular, particularly among consumers seeking natural alternatives due to a rising preference for holistic health approaches. The Synthetic formulations, while present, hold a smaller share, owing to the ongoing emphasis on natural ingredients in wellness products and therapies.

Cannabinoid-Based (Dominant) vs. Herbal-Based (Emerging)

Cannabinoid-Based formulations are currently the dominant player in the Medical Cannabis Market, benefiting from their effectiveness in treating a wide range of conditions, including chronic pain and anxiety. These formulations utilize specific chemical compounds derived from cannabis, providing targeted relief and consistent dosing. On the other hand, Herbal-Based formulations represent an emerging trend, appealing to consumers interested in botanical remedies and the whole-plant benefits of cannabis. This segment is growing rapidly as consumers become more educated about the potential wellness benefits of using whole herbs instead of isolated compounds. Together, these segments highlight a dynamic shift in consumer preferences towards more natural and effective therapeutic options.

Get more detailed insights about Medical Cannabis Market Research Report - Forecast till 2035

Regional Insights

North America : Market Leader in Medical Cannabis Market

North America is the largest market for medical cannabis, driven by increasing legalization and acceptance of cannabis for medical use. The U.S. holds approximately 75% of the market share, with Canada following at around 15%. Regulatory changes and growing awareness of cannabis benefits are key growth drivers. The demand for medical cannabis is expected to rise as more states legalize its use, creating a robust market environment. The U.S. is home to several leading companies, including Canopy Growth Corporation, Curaleaf Holdings, and Trulieve Cannabis Corp. These companies are expanding their operations and product offerings to meet the growing demand. The competitive landscape is characterized by significant investments in research and development, as well as strategic partnerships to enhance market presence. The focus on quality and compliance with regulations is paramount for success in this evolving market.

Europe : Emerging Market with Potential

Europe is rapidly emerging as a significant player in the medical cannabis market, driven by increasing legalization across various countries. Germany leads the market with approximately 40% share, followed by the Netherlands at around 20%. The European market is catalyzed by favorable regulations and a growing acceptance of cannabis for therapeutic purposes, which is expected to drive demand further. Countries like Germany, Italy, and the Netherlands are at the forefront of this market, with a competitive landscape featuring both local and international players. Companies are focusing on establishing a strong foothold through strategic partnerships and product innovation. The presence of key players such as Aurora Cannabis and Canopy Growth Corporation highlights the competitive nature of the market, as they seek to capitalize on the growing demand for medical cannabis products.

Asia-Pacific : Emerging Powerhouse in Cannabis

The Asia-Pacific region is witnessing a gradual shift towards the acceptance of medical cannabis, driven by changing regulations and increasing awareness of its therapeutic benefits. Countries like Australia and New Zealand are leading the way, with Australia holding approximately 60% of the regional market share. The demand for medical cannabis is expected to grow as more countries consider legalization and regulatory frameworks are established. Australia's competitive landscape features several key players, including Cann Group and AusCann, which are actively involved in research and development. The region is characterized by a mix of local and international companies vying for market share. As regulations continue to evolve, the potential for growth in the Asia-Pacific medical cannabis market is significant, with increasing investments in cultivation and distribution channels.

Middle East and Africa : Regulatory Changes Driving Growth

The Middle East and Africa region is beginning to explore the potential of medical cannabis, driven by regulatory changes and increasing interest in its therapeutic applications. Countries like Israel are leading the way, with Israel holding approximately 50% of the market share in the region. The evolving regulatory landscape is expected to catalyze growth, as more countries consider legalizing medical cannabis for therapeutic use. Israel's competitive landscape features a mix of local companies and international players, focusing on research and development to enhance product offerings. The presence of key players such as Tikun Olam highlights the region's potential. As awareness of the benefits of medical cannabis grows, the market is expected to expand, attracting investments and fostering innovation in cultivation and distribution practices.

Key Players and Competitive Insights

The Global Medical Cannabis Market has witnessed significant growth and diversification, driven by an increasing acceptance of cannabis for medicinal purposes across various jurisdictions. This market is characterized by a mix of established players and emerging companies that are working to capitalize on the expanding consumer base and evolving regulatory landscape.
The global cannabis and CBD market has evolved into a regulated, high-growth industry driven by legalization, medical adoption, and wellness trends. The U.S. remains the largest market, supported by state-level legalization, while Europe and Latin America are emerging growth regions. CBD products dominate wellness and pharmaceutical channels due to non-psychoactive properties. Innovation in cultivation technology, pharmaceutical-grade formulations, and compliance-driven manufacturing is shaping the competitive landscape. Despite regulatory complexities, the industry is expected to maintain strong double-digit growth over the next decade.
Competitive insights reveal a dynamic environment where companies strive to innovate through product development and differentiation while navigating stringent compliance parameters.
The competitive landscape is influenced by factors such as research and development capabilities, distribution networks, and partnerships, which play crucial roles in shaping market positioning and consumer engagement. As the market matures, companies are increasingly focusing on quality assurance and patient education, positioning themselves as trustworthy sources of medical cannabis products.
Trulieve has positioned itself as a strong contender in the Global Medical Cannabis Market, leveraging its extensive cultivation and retail footprint to gain market share. With a robust product catalog that includes various forms of cannabis, such as oils, capsules, and edibles, Trulieve successfully caters to diverse patient needs.
The company’s strategic presence in multiple regions allows it to optimize its distribution channels and connect with a vast consumer base. Known for its commitment to high-quality products and customer service, Trulieve's strengths lie in its operational efficiency and a solid reputation built on reliability.
This approach not only solidifies customer loyalty but also enhances its brand value within the global market, allowing it to maintain a competitive edge amid evolving industry dynamics. Aphria is another key player in the Global Medical Cannabis Market trends, recognized for its innovative approach and a wide range of products tailored to the medical sector.
The company offers an extensive lineup of cannabis oils, capsules, and dried flower products, catering to the specific therapeutic needs of patients around the globe. Aphria's market presence is bolstered by strategic partnerships and acquisitions that enhance its operational capabilities and expand its reach.
This includes collaborations aimed at advancing research on cannabis applications in medicine, which reinforces its commitment to quality and efficacy. Additionally, Aphria's strengths lie in its robust supply chain management, adherence to regulatory standards, and ongoing focus on sustainability. As the global market continues to evolve, Aphria maintains a strong position through its dedication to innovation and effective governance practices.

Key Companies in the Medical Cannabis Market include

Industry Developments

Q1 2024: New York Increases Cannabis Retail Licenses and Launches Grant Program for Impacted Business Owners New York announced it will increase the number of Conditional Adult-Use Retail Dispensary (CAURD) licenses from 275 to over 625 in 2025 and launch a new grant program awarding up to $30,000 to CAURD retailers who have been impacted by marijuana market-related convictions.
Q1 2024: Over 300 Cannabis Dispensaries Open in New York Under CAURD License As of March 2024, more than 300 dispensaries have opened in New York State under the Conditional Adult-Use Retail Dispensary (CAURD) license, reflecting rapid expansion in the state's regulated cannabis market.

Future Outlook

Medical Cannabis Market Future Outlook

The Medical Cannabis Market is projected to grow at a 9.33% CAGR from 2025 to 2035, driven by increasing legalization, rising patient awareness, and advancements in product development.

New opportunities lie in:

Development of telehealth platforms for cannabis consultations
Expansion of cannabis-infused pharmaceutical products
Investment in automated cultivation technologies for efficiency

By 2035, the Medical Cannabis Market is expected to be robust, reflecting substantial growth and innovation.

Market Segmentation

Medical Cannabis Market Application Outlook

Pain Management
Neurological Disorders
Cancer Treatment
Mental Health Disorders
Inflammatory Conditions

Medical Cannabis Market Formulation Outlook

Cannabinoid-Based
Herbal-Based
Synthetic

Medical Cannabis Market Product Type Outlook

Flower
Oils
Tinctures
Edibles
Topicals

Medical Cannabis Market Distribution Channel Outlook

Pharmacies
Online Stores
Dispensaries

Report Scope

MARKET SIZE 2024	18.74(USD Billion)
MARKET SIZE 2025	20.49(USD Billion)
MARKET SIZE 2035	49.99(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	9.33% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Canopy Growth Corporation (CA), Aurora Cannabis Inc. (CA), Curaleaf Holdings Inc. (US), Trulieve Cannabis Corp. (US), Green Thumb Industries Inc. (US), Cresco Labs Inc. (US), MedMen Enterprises Inc. (US), Harvest Health & Recreation Inc. (US)
Segments Covered	Application, Product Type, Distribution Channel, Formulation, Regional
Key Market Opportunities	Expansion of telehealth services enhances patient access to Medical Cannabis Market.
Key Market Dynamics	Evolving regulatory frameworks and consumer preferences drive innovation and competition in the Medical Cannabis Market.
Countries Covered	North America, Europe, APAC, South America, MEA