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Inductive couplings are used in the noncontact transmission of electrical power or electronic signals through stationary, rotating, or moving equipment using an inductive connection. Inductive electrical and electronic couplings transfer signals from one component to another through a shared magnetic field rather than direct contact.

Inductive couplings are used as an electronic solution to slip rings in rotating equipment. Slip rings wear due to friction and can cause noise and result in the loss of data or the failure of the system. Inductive electrical and electronic couplings used in rotating applications are typically air gap inductive couplings, where one part of the coupling is secured to a stationary data acquisition module and another coupling is secured to the rotating component with a space between them. In this system, both power and data can be transmitted by inductive coupling. Using inductive electrical and electronic couplings for inductive power transmission means that a system need not have additional power supplies. The inductive power connector provides both signal and power transmission. An inductive electrical coupling is used in low frequency energy sources.

Inductive couplings are often used to power signal transmitters because they are durable and offer predictable performance in a variety of environments. Inductive electrical and electronic couplings are used for long-term installations where a battery may not be suitable. An inductive electronic coupling is used in a variety of applications to pass data, signals, and power back and forth, and may also be used in the antennae on both a signal transmitter and a receiver. An example of this application is used in radio frequency identification tags, where an inductive coupling in both a tag and a reader use mutual inductance to power a microchip which functions like an electronic transmitter, sending data to the reader antenna when the two are brought into close contact.