Why Next.js image component doesn't work with next export?

We haven't used the Next.js image component in our template as it doesn't work with the next export.

The reason is that the default Next.js loader is not compatible with the Next.js image optimization API. So when we run the next export command, it throws an error.

Please refer to this (opens new window) docs confirming this issue. It shows the possible ways to solve this issue as well.