The Islamic State of Iraq and Syria (Isis) has lost 12 per cent of its territory in the first half of 2016, according analysis from UK-based research centre IHS.
In 2015, Isis territory shrunk by 12,800 square kilometer (km) to 78,000 square km, which is a loss of 14 per cent. In the first six months of 2016, that territory shrunk again by 12 per cent, says the study.
It is understood that Isis currently controls roughly 68,300 square km in Iraq and Syria.
In Iraq, the fight against Isis has intensified with Iraqi government operations in Faluja and Mosul causing significant damage to the jihadi group
Government forces in Syria have also been successful with the help of Russian airstrikes. In February and March, the ancient town of Palmyra was retaken by Syrian government forces.
As the Islamic States caliphate shrinks and it becomes increasingly clear that its governance project is failing, the group is re-prioritising insurgency, said Columb Strack, a senior analyst at IHS.
The study expects an increase in mass casualty attacks and isolated incidents targeting security personnel and infrastructure across Iraq and Syria.
This month alone over 300 people have been killed in a series of attacks across Iraq including the suicide bomb attack in Baghdad that killed 292 people on 3 July.