On the Tradeoffs of On-Device Generative Models in Federated Predictive Maintenance Systems

Abstract

Federated Learning (FL) has emerged as a promising paradigm for preserving client data ownership and control over distributed Internet of Things (IoT) environments. While discriminative models dominate most FL use cases, recent advances in generative models - such as Variational Autoencoders (VAE), Generative Adversarial Networks (GAN), and Diffusion Models (DM) - offer new opportunities for unsupervised anomaly detection in time series analysis, with relevant applications in predictive maintenance (PdM) in critical industrial infrastructures. In this work, we present a comprehensive analysis of VAEs, GANs, and DMs in the context of federated PdM. We analyze their performance and communication overhead under both full and partial federation setups, where only subsets of model components are shared. Building on split-parameter personalized FL, this paper provides an empirical instantiation of shared/private parameter partitioning for unsupervised generative Time-Series Anomaly Detection (TSAD), mapping the split to analysis and synthesis modules across the generative architectures. Our experiments over five clients and two industrial time-series benchmarks reveal distinct trade-offs in model utility, stability, and communication efficiency in heterogeneous cross-silo FL. For the evaluated GAN-based configurations, full federation improves final anomaly-detection utility relative to independent local training, although these models remain less robust than the VAE- and DDPM-based alternatives. For DMs, decoder sharing matches full federation while substantially reducing the communication payload.