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Satellite-based remote sensing applications require collection of high volumes of image data of which hyperspectral images are a particular type. Hyperspectral images are collected by high-resolution instruments over a very large number of wavelengths on board a satellite/airborne vehicle and then sent onwards to a ground station for further processing. Compression of hyperspectral images is undertaken to reduce the on-board memory requirement, communication channel capacity, and the download time. Compression algorithms can be either lossless or lossy. The purpose of this paper is to review a number of compression techniques employed for onsite processing of hyperspectral image data, to reduce the transmission overhead. A review of the theory of hyperspectral images and the compression techniques employed therein with emphasis on recent research developments is presented. Recent …