How do you manage state in a React application?

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Managing state is a crucial aspect of React development yet it can be challenging to decide the best approach. With the advent of various libraries and built-in React features, developers have multiple options, such as local component state, Redux, MobX, Recoil, and the Context API. Each of these has its advantages and disadvantages in terms of complexity, performance, and scalability. For example, using Redux might be overkill for simple applications, but it offers robust state management capabilities for more complex needs. On the other hand, the Context API is built into React and doesn't require any additional dependencies, but it might not be the best fit for state that changes frequently. Therefore, how do you go about selecting the most appropriate state management solution for your React applications? What factors do you consider?