Concept:
A Zener diode is designed to operate in reverse breakdown region.
Step 1: In reverse breakdown, the voltage across Zener diode remains nearly constant.
Step 2: This constant voltage can be used as a reference voltage.
Step 3: Therefore, Zener diode maintains output voltage nearly constant despite variations in input voltage or load.
Hence, it is used as:
\[
\boxed{\text{Voltage regulator}}
\]