The camera phone market is skyrocketing with worldwide annual shipments up more than 200 percent in 2004, according to a study released on Tuesday by In-Stat/MDR.

In-Stat/MDR, a high tech market research firm, said the rapid growth is being fueled by manufacturers offering camera features in most new models and improving image quality.

"The devices have gone mainstream in less than four years," said In-Stat/MDR analyst Neil Strother. "Now, one needs to look hard to find a handset that doesn't feature an embedded camera."

In-Stat/MDR found that Consumers have adopted camera phones rather quickly, with US penetration at about 14 percent.

The research firm also found that photo quality, though improving, needs to move beyond the VGA level rather quickly in order to stimulate greater photo taking.

Improved interoperability is necessary to allow photo sharing among US consumers who use different carriers, In-Stat/MDR said.