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The objective of image compression is to reduce irrelevance and redundancy of the image data in order to be able to store or transmit data in an efficient form.

Image compression may be lossy or lossless. Lossless compression is preferred for archival purposes and often for medical imaging, technical drawings, clip art, or comics. Lossy compression methods, especially when used at low bit rates, introduce compression artifacts. Lossy methods are especially suitable for natural images such as photographs in applications where minor (sometimes imperceptible) loss of fidelity is acceptable to achieve substantial reduction in bit rate. Lossy compression that produces negligible differences may be called visually lossless.