Used primarily in organic synthesis, this compound serves as a key intermediate in the production of various dyes and pigments, particularly those with applications in textiles and plastics. Its structure allows it to act as a precursor for creating complex molecules with specific color properties. Additionally, it is employed in research settings for studying the photophysical properties of indolium derivatives, which are valuable in developing advanced materials for optoelectronic devices. Its ionic nature also makes it suitable for use in certain types of ionic liquids, which are applied in green chemistry and catalysis.