In modern communicative and network computing, sharing and storing image data effectively have been a great challenge. People all over the word are sharing, transmitting and storing millions of images every moment. Although, there have been significant development in storage device capacity enhancement sector, production of digital images is being increased too in that proportion. Consequently, the demand of handsome image compression algorithm is yet very high. Image compression is minimizing the size in bytes of an image without degrading of the quality of the image to an unacceptable level. There are several different ways in which images can be compressed. This paper analyses various image compression techniques. Easy and less time consuming transmission of high quality digital images requires the compression-decompression (CODEC) technique to be as simple as possible and to be completely lossless or having high degree of quality. Keeping this demand into mind, researchers around the word trying to research such a compression mechanism that can easily reach the goal specified. We have presented various steps involved in the general procedure for compressing images. This analysis of various compression techniques provides knowledge in the identifying the advantageous features and help in choosing correct method for compression.