I have been researching effective algorithms for denoising biomedical signals (non-stationary) that can be implemented in real time either using FPGA or DSP. I can across many suggestions for algorithms and effectiveness but found DWT to be the one that can denoise most of the noises I am interested in (power line interference, surge, power dips..) I used the wavelet toolbox in matlab and performed denoising and wanted to make sure that this method had been implemented effective before as real-time. I read few papers too but want more opinions.
Even though I'm not much of a wavelet expert, I can answer with a definitive YES!!
Now, do you have any messy details to complain about, like the size of the box, the power that it consumes, or the number of frames of delay between the taking of the image and its display? Because that's your real problem.
Take the particular wavelet transform you want to use. Sit down and with pencil and paper figure out how many calculations (floating point operations, basically multiplies and adds) that need to be performed per frame. Look to see if the transform you want to use works with the fast wavelet transform. Multiply the FLOP per frame by your frame rate -- you should have an answer in MFLOPS or GFLOPS. Now hold that up against available processors or FPGAs, and figure out what needs to be in your box. Then multiply by three, because it always takes more real estate to do a calculation than you think.
Strict real-time can be complicated, but it definitely is doable with a controllable delay. Some call that practically real-time or almost real-time. You will easily find wavelet FPGA implementations for video compression or processing for instance.
I would like to underline that overcomplete or redundant wavelets can be a bit more complicated to implement, but could definitely have improved performance for denoising. An example can be found in Redundant wavelet processing on the half‐axis with applications to signal denoising with small delays: theory and experiments, and I think a related code can be found implemented in Scilab/Scicos (similar to Matlab) at Real Time De-noising with a Left Wavelet Transform.