As the industry looks towards Condition Based Maintenance (CBM) as the next maintenance paradigm, OEMs and suppliers are looking into their readiness in meeting the CBM challenges for the future. The US armed forces are currently investigating CBM for their Tactical and Combat vehicles as a means of improving combat readiness & equipment reliability, and reducing maintenance costs. Many cutting-edge technologies will have to be integrated in designing the CBM systems that will support the next generation of vehicles. While most of the required technologies exist, a comprehensive design will be required to make CBM systems feasible and economical.