Variable refrigerant flow (VRF), also known as variable refrigerant volume (VRV), is an HVAC technology invented in 1982. Like ductless minisplits VRFs use refrigerant as the cooling and heating medium. This refrigerant is conditioned by a single outdoor condensing unit, and is circulated within the building to multiple fan-coil units (FCUs).
VRFs are typically installed with an Air conditioner inverter which adds a DC inverter to the compressor in order to support variable motor speed and thus variable refrigerant flow rather than simply perform on/off operation. By operating at varying speeds, VRF units work only at the needed rate allowing for substantial energy savings at partial-load conditions. Heat recovery VRF technology allows individual indoor units to heat or cool as required, while the compressor load benefits from the internal heat recovery. Energy savings of up to 55% are predicted over comparable unitary equipment.  This also results in greater control of the building's interior temperature by the building's occupants.
VRFs come in two system formats, two pipe and three pipe systems. In a heat pump 2 pipe system all of the zones must either be all in cooling or all in heating. Heat Recovery (HR) systems have the ability to simultaneously heat certain zones while cooling others; this is usually done through a three pipe design, with the exception of Mitsubishi and Carrier who are able to do this with a 2 pipe system using a BC controller to the individual indoor evaporator zones. In this case the heat extracted from zones requiring cooling is put to use in the zones requiring heating. This is made possible because the heating unit is functioning as a condenser, providing sub-cooled liquid back into the line that is being used for cooling. While the heat recovery system has a greater initial cost, it allows for better zoned thermal control of a building and overall greater efficiencies. In heat recovery VRF systems some of indoor units are in cooling mode and some others are in heating mode that it leads to energy consumption saving. if the coefficient of performance in cooling mode of a system be 3 and the coefficient of performance in heating mode be 4 then heat recovery performance can reach to more than 7. Of course it’s unlikely that this perfect balance of cooling and heating request happen in much times of a year but every time this mixture state happen, it will save energy. 
VRF systems have been used in Japan since the 1980s. Currently, in Japan, VRFs are used in 50% of midsize office buildings (up to 70,000 ft2 or 6,500 m2) and 33% large commercial buildings (more than 70,000 ft2 or 6,500 m2).
Today, there are dedicated gateways that connect VRFs with Home Automation and BMS (Building Management Systems) controllers for centralized control and monitoring. In addition, such gateway solutions are capable of providing remote control operation of all HVAC indoor units over the internet incorporating a simple and friendly user interface.