A system and method for automatically predicting timing and costs of future service events in a life cycle of a product. A database contains a plurality of service information and performance information for the product. A statistical analyzer automatically analyzes the plurality of processed service information to determine a plurality of compartment failure information. A performance deterioration rate analyzer automatically analyzes the performance deterioration rate of the product from the plurality of service information and performance information. A simulator, automatically simulates a distribution of future service events in the life cycle of the product and predicts the costs of the service events according to the plurality of compartment failure information and the performance deterioration rate analysis.