Graphics file formats

Image file formats are standardized means of organizing and storing digital images. Image files are composed of digital data in one of these formats that can be rasterized for use on a computer display or printer. An image file format may store data in uncompressed, compressed, or vector formats. Once rasterized, an image becomes a grid of pixels, each of which has a number of bits to designate its color equal to the color depth of the device displaying it.

The size of raster image files is positively correlated with the resolution and images size (number of pixels) and the color depth (bits per pixel). Images can be compressed in various ways, however. A compression algorithm stores either an exact representation or an approximation of the original image in a smaller number of bytes that can be expanded back to its uncompressed form with a corresponding decompression algorithm. Images with the same number of pixels and color depth can have very different compressed file size. Considering exactly the same compression, number of pixels, and color depth for two images, different graphical complexity of the original images may also result in very different file sizes after compression due to the nature of compression algorithms. With some compression formats, images that are less complex may result in smaller compressed file sizes. This characteristic sometimes results in a smaller file size for some lossless formats than lossy formats. For example, graphically simple images (i.e. images with large continuous regions like line art or animation sequences) may be losslessly compressed into a GIF or PNG format and result in a smaller file size than a lossy JPEG format.

Vector images, unlike raster images, can be any dimension independent of file size. File size increases only with the addition of more vectors.

For example, a 640 * 480 pixel image with 24-bit color would occupy almost a megabyte of space:

640 * 480 * 24 = 7,372,800 bits  = 921,600 bytes = 900 kB

There are two types of image file compression algorithms: lossless and lossy.

Lossless compression algorithms reduce file size while preserving a perfect copy of the original uncompressed image. Lossless compression generally, but not always, results in larger files than lossy compression. Lossless compression should be used to avoid accumulating stages of re-compression when editing images.

...
Wikipedia