A vision system of a vehicle includes a camera disposed at a vehicle and having a field of view exterior of the vehicle. The camera includes an imaging array having a plurality of photosensing elements arranged in a two dimensional array of rows and columns. The imaging array includes a plurality of sub-arrays comprising respective groupings of neighboring photosensing elements. An image processor is operable to perform a discrete cosine transformation of captured image data, and a Markov model compares at least one sub-array with a neighboring sub-array. The image processor is operable to adjust a classification of a sub-array responsive at least in part to the discrete cosine transformation and the Markov model.