mad poet is talking about proximity sensors which take a power supply (active device) such as
https://www.pepperl-fuchs.com/global/en/classid_143.htm
g.mccormick and BobB are talking about magnetic reluctance sensors:
"The MPU is installed next to a drive shaft gear made of a material that reacts to a magnetic field. As each gear tooth passes the MPU, the gear interrupts the MPU's magnetic field, and an alternating voltage is developed"
http://www.woodward.com/EngineSpeedSensorMag.aspx
There must be different types of mag pickups. The woodward site says minimum output is 2V and it goes up to 50VAC. They also specify .5mm (.02") clearance between the mag pickup and the gear tooth, which on a lot of the ****ty turbines I have worked on would not be possible due to wheels that are not round, shaft run out, etc.
I believe the mag pickups that output millivolts are more often used in hazardous environments.
I see mainly proximity sensors on hydro electric turbines tooth wheels since these signals are less than 1 kHz.
mag pickups I have seen on diesel engines and steam turbines where shaft speed is 3600 rpm to start and then there are something like 60 teeth on the gear.
g.mccormick I didn't see any device on the spectec website that takes up to 120VAC as input and outputs square wave.