Vibration-based condition monitoring (VBCM) is widely utilized in various applications due to its non-destructive nature. Recent advancements in sensor technology, the Internet of Things (IoT), and computing have enabled the facilitation of reliable distributed VBCM where sensor nodes are deployed at multiple locations and connected wirelessly to monitoring centers. However, sensor nodes are typically constrained by limited power resources, necessitating control over the peak-to-average power ratio (PAPR) of the generated vibration signals. Effective control of PAPR is crucial to prevent nonlinear distortion and reduce power consumption within the node. Additionally, avoiding nonlinear distortion in the vibration signal and preserving its waveform is essential to ensure the reliability of condition monitoring. This paper conducts an in-depth analysis of the PAPR of vibration signals in VBCM systems, evaluates the impact of nonlinear power amplification on the system performance, and proposes a lightweight autoencoder-based signal companding scheme to control the PAPR to improve power efficiency and mitigate the impact of nonlinear distortion. The proposed scheme employs a lightweight reconstruction autoencoder with a compression-based activation function in the source to compress the vibration signals and avoid increasing the average power of the compressed signal. In the destination, the proposed scheme uses a denoising-expansion autoencoder to expand the compressed signals while minimizing noise enhancement during the expansion process. The experimental results demonstrate the effectiveness of the proposed companding scheme in preventing nonlinear distortion, improving the efficiency of power amplification in the source, and restoring the PAPR characteristics in the destination while avoiding the undesired effect of noise expansion.