In this study, we propose a method to estimate structural deformation and failure by using displacement-strain transformation matrices, i.e., strain-to-displacement transformation (SDT) and displacement-to-strain transformation (DST). The proposed SDT method can be used to estimate the complete structural deformation where it is not possible to apply deformation measurement sensors, and the DST method can be used for to estimate structural failures where strain and stress sensors cannot be applied. We applied the SDT matrix to a 1D beam, a 2D plate, rotating structures and real wind turbine blades, and successfully estimated the deformation in the structures. However, certain difficulties were encountered while estimating the displacement of brittle material such as an alumina beam. The study aims at estimating the displacement and stress to predict the failure of the structure. We also explored applying the method to multi-material structures such as a two-beam bonded structure. In the study, we used alumina–aluminum bonded structures because alumina is bonded to the substrate to protect the structure from heat in many cases. Finally, we present the results of the displacement and failure estimation for the alumina–aluminum structure.