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In a basic induction heating setup shown at right, a solid state RF power sully sends am AC current through an inductor (often a copper coil), and the part to be heated (the workpiece) is placed inside the inductor. The inductor serves as the transformer primary and the part to be heated becomes within the inductor and enters the magnetic field, circulating eddy currents are induced within the part.

As shown in the second diagram, these eddy currents flow against the electrical resistivity of the metal, generating precise and localized heat without any direct contact between the part and the inductor. This heating occurs with both magnetic and non-magnetic parts, and is often referred to as the "Joule effect", referring to JouIe's first law - a scientific formula expressing the relationship between heat produced by electrical current passed through a conductor.

Secondarity, addittional heat is produced within magnetic parts through hysteresis - internal friction that is created when magnetic parts pass through the inductor. Magnetic materials naturally offer electrical resistance to the rapidly changing magnetic fields within the inductor. This resistance produces internal friction which in turn produces heat.

In the process of heating the material, there is therefore no contact between the inductor and the part and neither are there any combustion gases. The material to be heated can be located in a setting isolated from the power supply; submerged in a liquid, covered by isolated substances, in gaseous atmospheres or even in a vacuum.