Implementing a reliable condition monitoring system for bearing fault diagnosis and prognosis poses a big challenge to the industry. This challenge stems from the fact that bearing failure is statistical in nature, and thus contains elements of uncertainty and unpredictability. To achieve high accuracy in bearing diagnosis in spite of this inherent variance, reliable data acquisition and analysis techniques are needed. This paper focuses on the vibration analysis of a wireless transmitter module with an integrated sensor that is embedded into the bearing outer raceway for high signal-to-noise ratio data acquisition. A mechatronic design of the sensor module under severe space constraints is presented. The paper also analyses an optimizing scheme for the placement of sensor module substrate supports to reduce vibration transmitted from the bearing to the on-board electronics.