A proximity sensor detects nearby objects without physical contact by emitting electromagnetic fields or beams. There are several types of proximity sensors including inductive, capacitive, ultrasonic, and optical sensors. Inductive sensors detect metal objects using magnetic fields while capacitive sensors can detect both metals and non-metals by measuring capacitance changes. Ultrasonic sensors use sound waves while optical sensors use light beams. Each sensor type has advantages and applications depending on the target object and environmental factors.