What it is
A shrink fit is an interference fit made thermally. The outer component is heated so that it expands, dropped over the inner component with clearance, and allowed to cool. As it contracts it grips, and the resulting joint carries far more torque and axial load than a fit that could be pressed together without damage.
The critical variable is temperature, because temperature is what decides how much the part has actually expanded. Too cold and it will not go on, or it seizes halfway, which is worse. Too hot and you risk affecting the metallurgy of a part that was heat treated for a reason.
Induction gives fast, controlled, local heating of the outer component, and a machine working on measured temperature rather than a fixed timer will hit the same expansion every time regardless of how warm the part was when it arrived.
Why induction
No press force on the parts, so no galling, no scoring of the fit surfaces and no damage to a tooth form or a bearing race.
Higher interference than a press fit can achieve, which means more torque capacity from the same joint.
Fast and local: the outer part is heated in seconds while the inner part stays cold, which is exactly the temperature difference the fit needs.
Repeatable: with closed-loop temperature control, every assembly gets the same fit.