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The Hall Effect principle of operation has been known for over one hundred years but only recently seen noticeable use. Semiconductor technology has made feasible the use of the technology in precision measurement systems. The Hall Effect sensing element and its associated electronics are now available in a single integrated circuit. Today Hall Effect sensors are used in many products in automotive, industrial and aerospace applications.
The Hall Effect element is constructed from a thin sheet of conductive material and has output connections perpendicular to the direction of current flow. When subjected 
to magnetic fields, the output voltage created is proportional to the magnetic field strength. The output voltage is very small (micro-volts) and requires amplification to be a useful signal. When the Hall Effect element is combined with an electronic circuit, it forms the basis of a Hall Effect sensor.
Why use a Hall Effect sensor?
Cost, performance and availability are always a consideration when specifying a particular measurement technology. Hall effect devices can be used in various sensors such as rotating speed, linear and rotary position. When correctly packaged, the sensors are immune to dust, dirt, mud, and fluid. These characteristics make Hall Effect sensor suited for speed and position measurement than alternative technology such as optical devices.The features and benefits of a given technology are factors that should be considered along with the specific requirements of the application.