Prognostic Health Management (PHM) uses health monitoring and prognostics to predict product failures by assessing degradation from normal operating conditions. Traditional reliability predictions are inaccurate, while PHM is more suitable as it considers actual usage. Research is being conducted to improve PHM models, sensors, communication and decision making to make reliability predictions more realistic. PHM is expected to become a cost-effective solution for predicting electronics reliability due to increasing electronics usage and demand for more reliable products.