A damage identification system of pipeline structure based on state space model is proposed for avoiding accident and real-time monitoring in this paper. This scientific and effective system is based on vibration signals to detect failures and faults in piping systems and aimed to comprehensively grasp the health status of piping system and give early warning. The results show that this system can response immediately in some special case, and the average response time of 4.436 s and the damage identification accuracy rate of 80% meet the design requirements, the response time is less than 20 s and the accuracy rate is more than 70%, respectively. This system can be adopted to various kinds of pipelines and deal with one or more failure mode thanks to the adaptation of fundamental theory and structure.