Prognostics and health management (PHM) is a method that permits the reliability of a system  to  be  evaluated  (health)  and  predicted  (prognostics)  in  its  actual  application conditions. Based on PHM, procedures can be developed to mitigate, manage risks and maintain the system. In recent years, prognostics and health management (PHM) has emerged as a key enabling technology to provide an early warning of failure; to forecast maintenance as needed; to reduce maintenance cycles; to assess the potential for life extensions; and to improve future designs and qualification methods. The application areas include structures, machine-tools, aircrafts, electronics, computers, and humans. Topics covered include methods for in-situ monitoring, approaches for resource efficient data collection, algorithms for data reduction and parameter extraction, methods for identifying and analyzing precursors based on failure mechanisms.