A multi-camera vision system of a vehicle includes at least four cameras disposed at a vehicle and having respective fields of view exterior of the vehicle. Each of the cameras is operable to capture image data representative of the respective field of view. Captured image data is compressed at the respective camera and the compressed image data is communicated to a control unit. The control unit includes an image processor operable to process image data. The image processor processes image data frame by frame using an indirect context model and without time wise dependency.