This paper focuses on the latest advancements in diagnosing faults in Permanent Magnet Synchronous Machines (PMSMs), with particular attention paid to demagnetization, inter-turn short circuits (ITSCs), and eccentricity faults. As PMSMs play an important role in electric vehicles, renewable energy systems and aerospace applications, ensuring their reliability is more important than ever. This work examines widely applied methods like Motor Current Signature Analysis (MCSA) and flux monitoring, alongside more recent approaches such as time-frequency analysis, observer-based techniques and machine learning strategies. These methods are discussed in terms of strengths/weaknesses, challenges and suitability for different operating conditions. The review also highlights the importance of experimental validations to connect theoretical research with real-world applications. By exploring potential synergies between these diagnostic methods, the paper outlines ways to improve fault detection accuracy and machine reliability. It concludes by identifying future research directions, such as developing real-time diagnostics, enhancing predictive maintenance and refining sensor and computational technologies, aiming to make PMSMs more robust and fault-tolerant in demanding environments. In addition, the discussion highlights how partial demagnetization or ITSC faults may propagate if not diagnosed promptly, necessitating scalable and efficient multi-physics approaches. Finally, emphasis is placed on bridging theoretical advancements with industrial-scale implementations to ensure seamless integration into existing machine drive systems.
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