What it is
Annealing heats metal to a temperature at which its internal structure can rearrange, holds it there, then cools it in a controlled way. Work hardening introduced by drawing, bending, rolling or machining is relieved, the grain structure is refreshed, and the material becomes softer, more ductile and easier to form.
Induction annealing does this with the heat placed by a coil rather than by a furnace. That has one consequence that matters more than any other: you can anneal part of a component. A drawn tube can be softened at the end that must be flared while the rest keeps its strength. A wire can be annealed continuously as it passes through a coil.
The cooling matters as much as the heating. Full annealing needs slow cooling; process annealing and stress relief are less demanding. The machine has to be designed for the cooling regime the material requires, not just the heating.
Why induction
Selective: anneal one region and leave the rest untouched, which no furnace can do.
Continuous: a coil in line with a drawing or forming operation anneals as the material passes, with no batch handling.
Fast: seconds rather than a furnace cycle, so there is far less time at temperature and much less oxidation and scale.
Clean: no combustion products, no furnace atmosphere to manage, and no shop-wide radiant heat.