Sodium 2-chloroethanesulfonate hydrate is primarily utilized as an intermediate in organic synthesis, particularly in the production of various chemical compounds. It plays a role in the manufacturing of surfactants and detergents, where its sulfonate group enhances the solubility and effectiveness of these products in water. Additionally, it is employed in the preparation of ion-exchange resins, which are critical in water purification and separation processes. The compound is also used in research and development for modifying polymers and creating specialized materials with tailored properties. Its reactivity and structure make it a valuable component in the synthesis of pharmaceuticals and agrochemicals, contributing to the development of active ingredients in these fields.