The integration of sensors into mechanical systems is becoming increasingly popular in the era of the Internet of Things and intelligent manufacturing. Bearings play a critical role in machinery and are among the various components that have attracted attention for sensor integration. Bearings operate under diverse conditions, such as varying loads, speeds, and temperatures. Issues like misalignment or inadequate lubrication can cause fatigue stress and localized defects, which may eventually result in bearing failure. Such failures can lead to severe damages, incurring high costs and posing risks to human safety. The most commonly employed techniques in the industry to address this problem have been condition monitoring and fault detection of bearings through vibration analysis. However, the implementation of accelerometer sensors into the bearing housing is hindered by their high cost and structural limitations. Additionally, they are susceptible to high signal-to-noise ratios and contamination from vibrations originating from other machines. Another significant drawback of using accelerometer sensors is the low energy of fault symptoms. With the substantial distance between the sensor and the target component (such as a bearing), fault symptoms may lose energy or become masked by surrounding noise and structural-borne vibrations caused by damping and long transmission paths. In order to overcome these challenges, this research proposes the integration of a low-cost piezoelectric transducer within the bearing housing. This research aims to design and prototype a tiny integrated piezoelectric transducer within a bearing housing and assess its effectiveness in detecting bearing faults under varying and consistent speed conditions. Moreover, this research explores the transducer's ability to detect bearing faults in varying temperatures. Last but not least, the transducer's performance is compared to an accelerometer in detecting normal and defective bearing conditions to evaluate their respective performances. Based on the obtained results, it can be inferred that this cost-effective and self-sensing transducer holds great potential for successful implementation in condition monitoring of bearings.