An adaptive proximity detection system comprising: a sensing coil, that has an inductance that varies upon a proximity to an inductance-affecting target; an oscillator connected to the sensing coil that outputs a signal that has an amplitude that varies with the inductance of the sensing coil; a comparator connected to the oscillator; a reference voltage module connected to the comparator; and an output driver connected to the comparator to provide an output to indicate a target proximity, and wherein the comparator is configured to compare the amplitude of the signal from the oscillator with a reference voltage from the reference voltage module; the reference voltage module comprises a resistor having a first end connected to a high terminal of a voltage source and having a second end and a resistor network to provide the reference voltage for the comparator; the resistor network has a resistance configured to be dynamically varied to adjust the reference voltage to a predetermined value; the resistor network is a digital potentiometer; the digital potentiometer has a first end connected to the second end of the resistor and to the comparator, and has a second end connected to a ground terminal of the voltage source; the adaptive proximity detection system comprises a first input line and a second input line providing electrical power to the adaptive proximity detection system, and an output line connected to the output driver; the adaptive proximity detection system is configured to receive a hot side of the electrical power on the first input line and a ground on the second input line, to which the ground terminal of the voltage source is connected; the first input line is connected to the voltage source; the resistance of the digital potentiometer is configured to vary based on a control signal input to the digital potentiometer; the adaptive proximity detection system further comprises a demodulator connected to the first input line; the adaptive proximity detection system is configured to receive a DC signal with a superimposed module signal across the first input line and the second input line during a calibration process; the demodulator is configured to provide the control signal input to the digital potentiometer; and a variation of the resistance of the digital potentiometer results in a change of the reference voltage generated by the reference voltage module. a sensing coil, that has an inductance that varies upon a proximity to an inductance-affecting target; an oscillator connected to the sensing coil that outputs a signal that has an amplitude that varies with the inductance of the sensing coil; a comparator connected to the oscillator; a reference voltage module connected to the comparator; and an output driver connected to the comparator to provide an output to indicate a target proximity, and wherein the comparator is configured to compare the amplitude of the signal from the oscillator with a reference voltage from the reference voltage module; the reference voltage module comprises a resistor having a first end connected to a high terminal of a voltage source and having a second end and a resistor network to provide the reference voltage for the comparator; the resistor network has a resistance configured to be dynamically varied to adjust the reference voltage to a predetermined value; the resistor network is a digital potentiometer; the digital potentiometer has a first end connected to the second end of the resistor and to the comparator, and has a second end connected to a ground terminal of the voltage source; the adaptive proximity detection system comprises a first input line and a second input line providing electrical power to the adaptive proximity detection system, and an output line connected to the output driver; the adaptive proximity detection system is configured to receive a hot side of the electrical power on the first input line and a ground on the second input line, to which the ground terminal of the voltage source is connected; the first input line is connected to the voltage source; the resistance of the digital potentiometer is configured to vary based on a control signal input to the digital potentiometer; the adaptive proximity detection system further comprises a demodulator connected to the first input line; the adaptive proximity detection system is configured to receive a DC signal with a superimposed module signal across the first input line and the second input line during a calibration process; the demodulator is configured to provide the control signal input to the digital potentiometer; and a variation of the resistance of the digital potentiometer results in a change of the reference voltage generated by the reference voltage module.