Default Image Loader vs Custom Loader: Choosing Between Simplicity and URL Control in Next.js Production Builds

Goal

Ensure that images rendered with next/image display correctly in both local development and production builds without manual workaround.

Constraint

In Next.js dev server (next dev) the next/image component bypasses any loader defined in next.config.js and serves images from the local filesystem. In production (next build followed by next start or static export) the component uses the loader specified in the configuration; if none is provided it falls back to the built‑in default loader that expects images to be imported as modules or served from a whitelisted domain.

When a custom loader such as loader: () => '{src}' is added, it works in development because the dev server ignores it, but in production the loader is executed and may generate URLs that lack the required asset prefix or CDN path, resulting in 404 responses while the same page appears fine during next dev.

Uncertainty

Given the need to keep the developer experience simple while guaranteeing correct image URLs in production, it is unclear whether to rely on the default loader with imported images or to implement a custom loader that explicitly adds the required public path or CDN prefix.

Which approach provides a reliable balance between build‑time simplicity and runtime URL correctness for a production deployment?