Forests are the most widely distributed ecosystem on the earth, affecting the lives of most humans daily, either as an economic good or an environmental regulator. As forests are a complex and widely distributed ecosystem, remote sensing provides a valuable means of monitoring them. Remote-sensing instruments allow for the collection of digital data through a range of scales in a synoptic and timely manner. Accordingly, a variety of image-processing techniques have been developed for the estimation of forest inventory and biophysical parameters from remotely sensed images. The use of remotely sensed images allows for the mapping of large areas efficiently and in a digital manner that allows for accuracy assessment and integration with geographic information systems. This article provides a summary of the image-processing methods which may be applied to remotely sensed data for the estimation of forest structural parameters while also acknowledging the various limitations that are presented. Current advancements in remote-sensor technology are increasing the information content of remotely sensed data and resulting in a need for new analysis techniques. These advances in sensor technology are occurring concurrently with changes in forest management practices, requiring detailed measurements intended to enable ecosystem-level management in a sustainable manner.This review of remote-sensing image analysis techniques, with reference to forest structural parameters, illustrates the dependence between spatial resolution to the level of detail of the parameters which may be extracted from remotely sensed imagery. As a result, the scope of a particular investigation will influence the type of imagery required and the limits to the detail of the parameters that may be estimated. The complexity of parameters that may be extracted can be increased through combinations of image-processing techniques. For example, multitemporal analysis of image radiance values or multispectral image classification maps may be analysed to undertake the assessment of such forest characteristics as area of forest disturbances, forest succession and development, or sustainability of forest management practices. Further, the combination of spectral and spatial information extraction techniques shows promise for increasing the accuracy of estimates of forest inventory and biophysical parameters.

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