Reader Survey: Optimism tempered by some headwinds

Results from the COMPRESSORtech2 Reader Survey 2026 point to a cautiously optimistic outlook for the global gas compression industry in 2026, tempered by ongoing concerns around regulation, staffing shortages and trade policy uncertainty. We began reaching out to readers in late fall and wrapped up our survey the first week of January.

When asked to compare industry conditions in 2026 with those of 2025, respondents were evenly split. About 48.4% expect conditions to be better, while an identical 48.4% anticipate the market will remain about the same. Only 3.1% foresee a deterioration in industry conditions. Comments suggest confidence in long-term natural gas fundamentals, particularly driven by LNG development, power generation demand and data center growth, even as near-term policy uncertainty clouds investment decisions.

Regulation and staffing top industry challenges

Regulation emerged as the most frequently cited challenge facing the gas compression industry, selected by 39.1% of respondents. Staffing and skills shortages followed closely at 34.4%, underscoring concerns about an aging workforce and difficulties attracting younger talent into technical and field-based roles. Economic volatility accounted for 18.8%, while supply chain issues, though still relevant, ranked lower at 7.8%.

Several respondents noted that regulatory uncertainty and shifting trade policies are having a cascading effect, complicating capital planning, procurement decisions and workforce development across the sector.

Capital spending largely steady in 2026

Looking at capital spending plans, 41.5% of respondents expect spending in 2026 to remain about the same as in 2025. Nearly 29.2% anticipate higher capital expenditures, while 9.2% expect spending to decline. Another 20% said they were not yet sure.

Comments suggest that replacement of aging equipment, automation investments and selective regional expansion are supporting spending, while macroeconomic uncertainty and geopolitical risks continue to constrain larger commitments.

North America leads growth expectations

North America was identified as the region offering the greatest growth opportunity over the next five years, selected by 40% of respondents. The Middle East followed at 26.2%, reflecting continued infrastructure buildout and production growth. Europe accounted for 4.6%, while Asia, including China, drew a combined 16.9%. About 10.8% said they were unsure.

Trade policy and tariffs weigh on sentiment

Trade policy remains a significant factor shaping business conditions. While 56.3% described the impact of the Trump administration on oil and gas as somewhat important but not decisive, 32.8% characterized it as crucial. Only 10.9% said it was not significant.

Tariffs, in particular, continue to affect the industry. About 43.8% reported that tariffs have negatively impacted their businesses by increasing costs or delaying equipment deliveries. Roughly 32.8% said tariffs had no significant impact, while smaller shares cited positive effects on domestic competitiveness or said it was too early to tell.

Calls for greater policy stability were a recurring theme, with many respondents emphasizing the need for predictable trade frameworks to support long-term planning.

LNG leads alternative fuel outlook, hydrogen still uncertain

Among natural gas–based alternative fuels, LNG was seen as offering the strongest growth potential over the next five years, selected by 66.7% of respondents. Hydrogen followed at 31.8%, while CNG and LPG together accounted for less than 2%.

Despite growing interest, sentiment around hydrogen blending remains cautious. Nearly 47.6% said it is too early to tell whether hydrogen-natural gas blending will become a major market. About 22.2% view it as the next big thing, while 30.2% believe it will remain a niche market at most.

Currently, 31.3% of companies report they are watching and waiting on hydrogen, while 28.1% are discussing it without significant spending. About 20.3% said they have no current involvement, and 20.3% indicated they are investing heavily.

AI adoption accelerates, with maintenance leading use cases

Artificial intelligence is expected to play a growing role in gas compression operations. More than 36.5% of respondents expect AI to improve operational efficiency and maintenance, while 20.6% see benefits in customer service and analytics. About 14.3% anticipate workforce reductions through automation, and 12.7% flagged increased cybersecurity or data management risks. Roughly 15.9% expect no major impact.

AI adoption is already underway. About 33.9% said AI or machine-learning tools are in active use, while 23.1% are in testing or pilot stages. Another 21.5% have discussed AI but not implemented it, and 21.5% are not currently considering it.

Predictive maintenance and diagnostics were identified as the most promising AI application area, selected by 54.1% of respondents, followed by supply chain optimization, emissions monitoring and workforce planning.

Midstream demand expected to remain firm

Expectations for midstream compression demand in 2026 were broadly positive. About 20.6% expect demand to increase significantly, while 34.9% anticipate moderate growth. Another 42.9% expect demand to remain stable. Fewer than 2% foresee any decline.

LNG feed gas and export infrastructure was identified as the strongest midstream growth opportunity over the next three years, selected by 34.4% of respondents, followed by gas gathering and field compression at 26.2% and gas processing and treating at 21.3%.

Electrification gains interest but gas drive remains dominant

Electrification is gaining traction, though gas-driven compression remains prevalent. About 35.1% said they are expanding electric-drive compression capacity, while 36.8% are evaluating hybrid or dual-drive systems. Roughly 21.1% continue to rely primarily on gas-driven compression, and 7% have no current electrification plans.

Editorial priorities align with industry transition

Respondents expressed strong interest in editorial coverage of hydrogen and alternative fuels, electrification, emissions reduction and regulatory developments, alongside workforce development and digital technologies. Technology case studies and in-depth company profiles ranked highest among preferred content formats, reinforcing demand for practical, experience-based insight as the industry navigates a period of transition.

What readers are saying about 2026

“The outlook is good for the natural gas industry.”

“Overall demand for natural gas is very bullish, driven by data center growth. There will be more gas needed to fulfill massive power demands.”

“We have more gas compression projects in the queue over the next two years than we had in 2024–25.”

“Upstream business will remain strong. Midstream is supposed to remain at the same level, while downstream may be lower or even par.”

“The underlying reason for the flat-to-downward trend is the unpredictability of government policies and tariff rhetoric. End users are constantly updating ROI models, which impacts heavy-duty rotating equipment purchasing decisions.”

“Rules and regulations are real hangups. Hopefully next year will be better.”

“Pipeline construction has not yet had the politics settled.”

“Young people don’t want to enter this industry. There is a real shortage of tradespeople and technical staff.”

“Many experienced workers will retire soon, and there still isn’t enough new talent coming in.”

“Gas use is increasing, and LNG terminals are coming online or are under construction.”

“Long term, I am very bullish on natural gas because of the buildout of manufacturing I believe the U.S. will see.”

“We currently have an oversupply of oil globally, and we’ve already seen a decline in rig count.”