Angle measurement is frequently required in both automotive and industrial applications. Contactless methodshave the advantage that they are free of wear. If a magnetic field acts as the transmitter between the physicalvalue to be measured and the actual sensor, the magnetic system and the signal conditioning electronics can beencapsulated separately making such systems robust against dirt, dust and liquid as well as mechanicaldestruction. Among this class of measurement systems, those using the magnetoresistive effect (MR effect) arecharacterised by the additional feature that they evaluate the direction of the magnetic field and not the fieldstrength. Therefore MR based systems tolerate variations in field strength caused by ageing or temperaturesensitivityof the magnet as well as mechanical tolerances. This recommends MR based systems for applicationswhere robust, precise, and also cost-efficient solutions are required.