Bubble sort is preferred for nearly sorted arrays because: 1) Can achieve O(n) time complexity with early termination, 2) Requires minimal extra space (O(1)), 3) Simple implementation for small datasets, 4) Good for continuous sorting of incoming data, 5) Easy to detect when array becomes sorted, 6) Performs minimal swaps on nearly sorted data, 7) More efficient than merge sort for small, nearly sorted arrays, 8) Useful in embedded systems with memory constraints.