First of all, you need to understand what expectations you have in answering this question. The basic question whether the market segment you are targeting is a growing, stagnating or weakening market should you be able to answer if you already have some industry experience.
Further questions on market indicators or market development can be answered if you are dealing with these questions in more detail. Nobody expects that you are able to pull these answers from a hat, so to speak. This is often the result of careful work! To your comfort: If you find out that these questions are difficult to answer, this also applies to potential competitors. Excellent know-how is often a good barrier against competitors. Business ideas that are easy to copy are often not good business ideas!