Used primarily in organic synthesis, this compound serves as a key intermediate in the preparation of various pharmaceuticals and fine chemicals. It is particularly valuable in the development of active pharmaceutical ingredients (APIs) due to its reactive iodine and nitro groups, which facilitate further functionalization. Additionally, it finds application in research laboratories for studying chemical reactions and mechanisms, especially those involving aromatic substitution. Its role in the synthesis of dyes and pigments is also noteworthy, contributing to the production of specialized colorants.