Sulfoacetic acid is primarily used in the synthesis of surfactants and detergents due to its ability to enhance solubility and stability in aqueous solutions. It is also employed in the production of specialty chemicals, including pharmaceuticals and agrochemicals, where it acts as an intermediate. In the textile industry, it serves as a dyeing auxiliary, improving the fixation of dyes to fabrics. Additionally, it finds application in water treatment processes as a chelating agent to control metal ions. Its versatility makes it valuable in various industrial and chemical manufacturing processes.