This kind of connection is used in cases where permanent connection techniques like soldering or non-permanent ones like pogo pins or elastomeric "Zebra" connectors are not suitable, for example due to extreme vibrations or temperatures. They can also be used where low-distortion signal transmission is needed, like on PCB (board-to-board) interconnects, or in IC testing sockets where additionally many mating cycles are required.
This kind of connection is utilized when traditional methods like soldering or pogo pins aren't suitable due to factors like high vibrations or temperatures. It's also used for situations requiring low signal distortion, such as connecting PCBs or IC test sockets that need frequent connections and disconnections.