How can PHP functions like preg_replace() be utilized effectively to modify string data?

To modify string data effectively using PHP functions like preg_replace(), you can use regular expressions to search for specific patterns within the string and replace them with desired values. This function is especially useful for tasks like sanitizing user input, formatting data, or manipulating text content.

```php
$string = "Hello, this is a sample string with numbers like 12345.";
$modified_string = preg_replace('/[0-9]+/', 'X', $string);
echo $modified_string;
```

In this example, the preg_replace() function is used to replace all numbers in the string with the letter 'X'. The regular expression '/[0-9]+/' matches any sequence of digits in the string, and 'X' is used as the replacement value. The modified string is then echoed to display the result.