Fault analysis in industrial equipment has been usually performed using classical techniques such as failure modes and effects analysis (FMEA) and fault tree analysis (FTA). Model-based fault analysis has been used during the last several years in order to overcome the limitations of classical methods when complex industrial equipment has to be analyzed. In railway and automotive sectors, the development and validation of new products are based on hardware-in-the-loop (HIL) platforms. In this chapter, a methodology to enhance classical FMEAs is presented. Based on HIL simulations, the objective is to improve the results of the fault analysis with quantitative information about the effects of each fault mode. In this way, the impact of the fault analysis in the design of the traction system, the development of new diagnostic functionalities and in the maintenance tasks will increase.