Image compression involves reducing the size of image files to reduce storage space and transmission time. There are three main types of redundancy in images: coding redundancy, spatial redundancy between neighboring pixels, and irrelevant information. Common compression methods remove these redundancies, such as Huffman coding, arithmetic coding, LZW coding, and run length coding. Popular image file formats include JPEG for photos, PNG for web images, and TIFF, GIF, and DICOM for other uses.