Hi Venkatesham,
By default, upon image upload to CQ DAM, a “DAM Update Asset” workflow would be triggered and one of the many processes inside the workflow is to generate a web rendition of the uploaded image. And the default setting of CQ Image API is to always render the web-enabled version of the uploaded image. This combination helps to limit the size and the quality of the image displayed thus reducing the page load time.
The OOTB setting for the web-enabled image dimensions is set to 1280 pixels by 1280 pixels. And the image quality is set to reduce to 90%.
These can be configured based on the image size needed,
Example: You might want to have different size of images for iPad, Tab, Mobile, Desktop ..etc to give best experience to users, at that point you can configure these workflow to automatically generate images of different renditions.
You can find DAM Asset workflow at http://localhost:4502/cf#/etc/workflow/models/dam/update_asset.html
Thanks