Encoders are pivotal sensor components in mechatronic automation, converting mechanical motion into an electrical signal that can be interpreted for precise control and positioning of mechanical parts. Rotary encoders are essential in translating rotational motion into a quantifiable electronic signal. They come in two main types: absolute and incremental. The absolute rotary encoder provides a unique code for each shaft position, offering precise position tracking. Incremental rotary encoders, on the other hand, output pulses correlating to the amount of rotation, allowing for the calculation of position through pulse counting.