Yes. The image component needs a URL pointing at the image file, so you have to either transform the image file bytes into a Data URL (base64 encoding, basically), or store the image file content in a place Ignition can reach to feed it back to the image component in your browser.
For the latter approach, the WebDev module is the canonical solution. If you want to avoid spending those $$, and you can use a database to hold images as blobs, you might find my Blob Server module helpful.