1. A processor-implemented method for generating a panoramic background image, said method comprising: receiving, by a processor, a reference image frame and a second image frame, from a camera, said second image frame offset from said reference image frame, wherein said reference image frame and said second image frame comprise pixels providing color data and depth data; partitioning, by said processor, said second image frame into segments and objects, said segments comprising a group of pixels sharing one or more common features associated with said color data and depth data, said objects comprising one or more related segments; assigning, by said processor, a transformation type to each of said segments, based on a distance of said segment from said camera, wherein said transformation type is selected from the group consisting of a two dimensional (2D) transformation and a three dimensional (3D) transformation; assigning, by said processor, one of said transformation types to each of said objects, based on a percentage of assigned transformation types to each of said segments in said object; performing, by said processor, a transformation of said objects and a subset of said segments not included in said objects, to a co-ordinate system of said reference image frame using said assigned transformation types; and integrating, by said processor, said second image frame, comprising said transformed objects and said transformed segments, with said reference image frame to generate said panoramic background image.