Used primarily as an intermediate in the synthesis of nylon-6, this compound plays a key role in polymer manufacturing. It is involved in the production of fibers and plastics due to its ability to form long-chain polyamides through ring-opening polymerization of caprolactam, which is derived from this compound. Additionally, it finds use in pharmaceutical applications as a building block for certain peptides and biologically active molecules. Its hydrochloride form enhances solubility and stability in synthetic processes.