Spare parts redundancy is an effective way to improve system reliability and prolong system lifetime. Generally, preventive maintenance and inventory management of a standby system can significantly reduce operating and maintenance costs, particularly crucial in industrial systems. Additionally, during storage, spare parts may experience degradation failure due to internal mechanisms and sudden failure due to external shocks, complicating the health management of the standby system. Unfortunately, few existing studies consider the impact of spare parts’ competing failures in standby systems. To address this gap, this paper proposes a novel method for predicting the lifetime and optimizing the maintenance policy of nonlinear degradation standby systems, considering both degradation and sudden failures of spare parts. Firstly, we established the degradation model under the competing failure of spare parts and derived the analytical formula for life prediction of the standby system in the presence of competing failures, assuming that sudden failure follows the Weibull distribution. Furthermore, we developed a joint optimization model for replacement maintenance and inventory management based on predictive information, aiming to minimize the expected cost, in which the block replacement interval and the number of spare parts are treated as decision variables. Finally, the effectiveness and potential application value of the proposed method are verified through numerical simulation and a case study.