An incremental encoder is a type of sensor used to measure the position or movement of an object. It generates a series of pulses as the object moves, allowing for precise tracking of its position relative to a starting point. These encoders are commonly used in applications like robotics, CNC machines, and conveyor systems. The output from an incremental encoder typically consists of two square wave signals, often referred to as A and B. By analyzing the phase difference between these signals, the direction of movement can be determined, making incremental encoders effective for real-time position feedback.