The Binarization & Quantization IP plays a critical role in the image processing pipeline by transforming raw images into reduced complexity data. This IP efficiently binarizes images, converting them to a simpler form that can be processed with less computational power. Additionally, it quantizes images, effectively reducing the number of bits required to represent them, leading to reduced bandwidth requirements for large volumes of image data. This efficiency makes it particularly useful in scenarios necessitating high-speed data handling without compromising image quality.