Condition monitoring: reducing downtime in high-risk industrial environments

Across power generation facilities, data centers, industrial plants, and renewable energy installations, the use of real-time condition monitoring is evolving the ways organizations can manage risk. One of the main drivers is that many of the assets these facilities rely on — including large transformers, switchgear, motors, energy storage systems, and more — now carry replacement lead times of months or years (36-month lead times have become common for large power transformers¹. Sensors, power modules and passive components face procurement timelines of up to 60 weeks²). Given these circumstances, equipment failures can quickly escalate into prolonged, costly downtime for organizations in any industry.

To address this, continuous condition monitoring systems are integrated with diagnostic systems that provide real-time visibility into how equipment is performing and aging. The implementation of these strategic safeguards provides operators with the time and insight needed to act before a minor anomaly becomes a major loss.

When condition monitoring systems deliver reliable early warnings, operators can intervene before equipment issues become costly or dangerous. Here is an example of how this could play out – let’s say a facility operator installs a dissolved gas analysis (DGA) system on a relatively new transformer to establish a performance baseline. To their surprise, the system detected abnormal gas patterns suggesting early internal degradation, which was unexpected for equipment only a few years old. After verifying the readings, the team adjusted the transformer’s load and scheduled targeted maintenance. Here, early detection provided critical information to allow the facility to remain operational while maintenance occurs.

By detecting both subtle changes in equipment performance and trends that are indicative of future equipment failures, condition monitoring sensors help operators:

• Extend equipment life by reducing load or adjusting operating conditions
• Prevent cascading failures that damage entire systems and facilities
• Schedule controlled shutdowns to avoid operational disruption
• Order replacement parts early to combat lead times

Condition monitoring is especially impactful in high-risk, high-value, and hard-to-access equipment. Often, these pieces of equipment operate continuously, endure substantial electrical or mechanical stress, with limited tolerance for unplanned outages.

Three sectors where condition monitoring delivers critical value

Ensuring that condition monitoring systems perform reliably is just as important as the insights they provide to stakeholders. This is where FM Approvals’ testing and certification of condition monitoring equipment plays a critical role.

For manufacturers, FM Approvals provides a clear, objective benchmark that demonstrates that condition monitoring mechanisms meet the requirements of globally recognized performance standards. For facility owners, it provides confidence that the data received via condition monitoring devices is accurate, actionable, and supportive of broader loss prevention strategies.

FM Approvals examination standards evaluate condition monitoring technologies to confirm they can reliably detect critical failure modes, function safely and provide trustworthy early warning to prevent catastrophic loss and prolonged downtime in the following critical environments:

1. Power generation and high-voltage electric

Transformers and switchgear equipment operate under continuous electrical load, often near capacity during peak demand. Their internal components — insulation, bushings and conductors — experience constant thermal and electrical stress, while enclosed switchgear compartments make visual inspection difficult and allow hidden deterioration to advance unnoticed. Because failures in this environment can cascade into arc flash, transformer rupture or widespread power disruption, early detection is critical.

Condition monitoring technologies for this equipment help identify overheating, partial discharge, insulation breakdown and bushing degradation before they become dangerous.

Relevant FM Approvals Examination Standards:

• FM 6520 for Dissolved Gas Analysis Monitoring Systems in Liquid-Immersed Transformers
• In 2023, FM Approvals certified the first-ever dissolved gas analysis sensor under FM 6520.
• FM 6510 for Switchgear Equipment and Other High Voltage Equipment
• Within this category, transformer bushings are a common point of failure
• In 2024, FM Approvals certified the first-ever bushing monitoring system under FM 6510.
• FM 3990 for Liquid-Insulated Transformers

2. Mechanical and renewable energy

Mechanical systems that operate under continuous or variable loading — such as motors, generators, pumps, compressors, turbines and wind turbine blades — experience significant wear due to vibration, temperature fluctuations, aerodynamic forces and environmental exposure.

In industrial settings, rotating machinery may operate in high-temperature areas, confined spaces, or locations where physical access is limited. In renewable energy environments, wind turbines endure constant aerodynamic loading, variable wind conditions, moisture, and salt exposure (in offshore installations). Their remote locations also reduce opportunities for manual inspection. As a result, deterioration such as bearing wear, shaft misalignment, lubrication breakdown, blade delamination, cracking or lightning damage can progress unnoticed until it affects output or causes failure.

Condition monitoring technologies that are designed for these environments can detect subtle mechanical, vibrational or acoustic changes before they become visible. Early identification of abnormal patterns allows operators to coordinate repairs, prevent cascading failures, and preserve system reliability - especially in applications where downtime disrupts production or reduces power generation.

Relevant FM Approvals Examination Standards:

• FM 6530 for Condition Monitoring of Rotating Machinery
• FM 6550 for Acoustic Monitoring of Wind Turbines

3. Mission critical and energy storage

Data centers, semiconductor fabs, pharmaceutical facilities, and other mission-critical operations rely on continuous electrical and mechanical performance. Their uninterruptable power supply systems, backup generators, cooling pumps, switchgear and facility transformers operate without interruption and within narrow performance tolerances. Even minor deterioration in one system can ripple across interconnected equipment, causing disruptions that may result in product loss, environmental instability, or downtime.

Energy storage systems introduce additional complexity. Lithium-ion battery energy storage systems (BESS) installations operate in dense, enclosed configurations where heat and gas can accumulate quickly. High cycling rates, tight thermal tolerances, and the proximity of adjacent cells increase the likelihood that a localized fault may develop into a larger thermal event.

Condition monitoring technologies for these environments provide continuous insight into electrical loading, mechanical performance and equipment health, enabling operators to detect hidden deterioration early and prevent cascading failures across critical systems. In battery storage applications, early off-gas detection during pre-thermal runaway conditions provides the narrow warning window needed to isolate affected modules and prevent thermal runaway.

Relevant FM Approvals Examination Standard:

• FM 6540 for Lithium-Ion Battery Off-Gas Detection
• In 2025, FM Approvals certified multiple lithium-ion battery off-gas detectors under FM 6540

The reliability of condition monitoring equipment matters

Not all monitoring technologies detect the same failure modes or perform consistently under the demanding conditions found in industrial and power environments. FM Approvals’ standards for condition monitoring solutions evaluate the reliability of these devices to verify that they:

• Detect the failure modes, including electrical stress, thermal degradation, mechanical wear, acoustic anomalies and early-stage off-gassing
• Operate reliably under real-world environmental and electrical conditions
• Avoid contributing to safety hazards like ignition, arc flash, etc.
• Perform consistently over time, reducing the risk of false alarms or missed events
• Integrate safely into complex electrical and mechanical systems

When condition monitoring systems perform as intended, operators gain trustworthy early warning, enabling them to intervene before deterioration becomes costly or dangerous. These technologies complement existing standards for transformers, switchgear and rotating machinery, helping facilities build a more resilient, predictable maintenance and risk-management framework.

FM Approvals’ goal in evaluating condition monitoring equipment is to provide organizations with a trusted benchmark they can rely on when selecting technologies that support stronger loss prevention.

If your organization manufactures property loss prevention products and would like to begin the certification process, apply for certification or find an FM Approvals office near you.

To learn more about products we certify and our Examination Standards, visit fmapprovals.com.
To find all FM Approved products, visit the Approval Guide

¹U.S. Department of Energy “Large Power Transformer Resilience,” July 2024.  
²Sourceability “Q3 2025 Lead Time Report,” October 2025.