An incremental encoder is a type of rotary encoder that generates a series of pulses as it rotates. These pulses are used to measure the position, speed, or direction of a rotating object. The encoder does not retain information about its absolute position; instead, it provides incremental data that allows a system to calculate movement by counting the pulses from a reference point. Incremental encoders are widely used in automation, robotics, and industrial control systems to track motion and provide feedback to controllers.