Inductive proximity sensors are noncontact sensing devices used to detect the approach of a target by an increase in coil resistance due to eddy current loss. Extending the operating distance of these sensors is demanded. In this paper, we propose the use of a magnetoplated wire (MPW) as a sensing coil. The MPW is a copper wire, whose circumference is plated with a magnetic thin film. We analyze the impedance of a proximity sensor using a copper wire (COW) and MPW coils by a finite element method. The use of the MPW results in a decrease in AC resistance due to the proximity effect, an increase in inductance, and the generation of a higher flux than when the COW is used. Therefore, it is possible to increase the quality factor Q of the MPW coil. As a result, the operating distances of the MPW and COW coils are 5.0 and 3.8 mm, respectively. The operating distance of the MPW coil is 1.3-fold that of the COW coil.