Image compression is a type of data compression applied to digital images, to reduce their cost for storage or transmission. Algorithms may take advantage of visual perception and the statistical properties of image data to provide superior results compared with generic data compression methods which are used for other digital data.

In information theory, data compression, source coding, or bit-rate reduction is the process of encoding information using fewer bits than the original representation. Any particular compression is either lossy or lossless. Lossless compression reduces bits by identifying and eliminating statistical redundancy. No information is lost in lossless compression. Lossy compression reduces bits by removing unnecessary or less important information. Typically, a device that performs data compression is referred to as an encoder, and one that performs the reversal of the process (decompression) as a decoder.