A circuit device includes: a color reduction circuit configured to execute color reduction processing from input image data in which pixel data is m bits to color-reduced image data in which pixel data is n bits, and configured to apply spatial error diffusion or temporal error diffusion in the color reduction processing; a storage circuit storing the color-reduced image data; and an image conversion circuit configured to execute image conversion processing, which is at least one of mapping processing and scaling processing, on the color-reduced image data stored in the storage circuit to output output image data, and configured to execute interpolation processing, which is in the image conversion processing, of generating pixel data of the output image data from a plurality of pieces of pixel data of the color-reduced image data.