Scandium(III) sulfate xhydrate is primarily used in the field of materials science, particularly in the development of high-performance alloys. When added to aluminum-based alloys, it significantly enhances their strength, durability, and resistance to corrosion, making them ideal for aerospace and automotive applications.

It is also employed in the production of solid oxide fuel cells (SOFCs) due to its ability to improve ionic conductivity at high temperatures, which is critical for efficient energy conversion. Additionally, this compound finds use in the synthesis of specialized ceramics and glass, where it acts as a stabilizer and enhances optical properties.

In research, it serves as a precursor for preparing other scandium compounds, which are explored for their potential in catalysis, electronics, and advanced material design. Its role in these applications highlights its importance in advancing modern technology and industrial processes.