Alternative to digital rotary encoder

I have tried the servo motors for sewing machines. Often DC motors are used as servo motors, and the specific ones are often rather costly. The needs for a sewing machines are different and for instance is position control not any serious issue like it mostly is in classical servo solutions. Cost is an issue with sewing machines.

For industrial sewing machines, you often use BLDC motors. Could you provide an example on what you mean by AC servo motors?