Image compression is the process of reducing the file size of digital images to optimize storage and transmission without significantly compromising visual quality. This is achieved through techniques like lossy and lossless compression.

Lossy compression reduces file size by discarding some image data, which may slightly affect quality, while lossless compression reduces size without any loss of quality. Implementing effective image compression is crucial for enhancing website performance, as smaller image files load faster, improving user experience and search engine rankings.