Compared to bearing-mounted systems, bearingless encoders are very space-saving due to their shallow installation depth. With their compact design and suited for large shaft diameters they easily integrate into existing mechanics. No unprotected, expensive outdoor installations.
Magnetic sensing allows large gaps between sensor system and magnetic measure (usually magnetic wheel or center magnet).
This way they can be positioned separated from each other, and eliminates the need for precision ball bearings usually applied in rotary encoders.
In parallel, this allows for high mounting tolerances. This provides more flexibility in design and assembly. As there is no need for bearings, there is no wear either.
This way the encoders withstand dust, dirt or textile fibers. They are immune to shaft currents or bearing loads and robust against vibration and shock.