sed provides escape sequences to change the case of replacement strings, which might include backreferences, shell variables, etc.

SequenceDescription
\Eindicates the end of case conversion
\lconvert the next character to lowercase
\uconvert the next character to uppercase
\Lconvert the following characters to lowercase (overridden by \U or \E)
\Uconvert the following characters to uppercase (overridden by \L or \E)

First up, changing case of only the immediate next character after the escape sequence.

# match only the first character of a word
# use & to backreference the matched character
# \u would then change it to uppercase
$ echo 'hello there. how are you?' | sed 's/\b\w/\u&/g'
Hello There. How Are You?

# change the first character of a word to lowercase
$ echo 'HELLO THERE. HOW ARE YOU?' | sed 's/\b\w/\l&/g'
hELLO tHERE. hOW aRE yOU?

# match lowercase followed by underscore followed by lowercase
# delete the underscore and convert the 2nd lowercase to uppercase
$ echo '_fig aug_price next_line' | sed -E 's/([a-z])_([a-z])/\1\u\2/g'
_fig augPrice nextLine

Next, changing case of multiple characters at a time.

# change all alphabets to lowercase
$ echo 'HaVE a nICe dAy' | sed 's/.*/\L&/'
have a nice day
# change all alphabets to uppercase
$ echo 'HaVE a nICe dAy' | sed 's/.*/\U&/'
HAVE A NICE DAY

# \E will stop further conversion
$ echo 'fig_ aug_price next_line' | sed -E 's/([a-z]+)(_[a-z]+)/\U\1\E\2/g'
fig_ AUG_price NEXT_line
# \L or \U will override any existing conversion
$ echo 'HeLLo:bYe gOoD:beTTEr' | sed -E 's/([a-z]+)(:[a-z]+)/\L\1\U\2/Ig'
hello:BYE good:BETTER

Finally, examples where escapes are used next to each other.

# uppercase first character of a word
# and lowercase rest of the word characters
# note the order of escapes used, \u\L won't work
$ echo 'HeLLo:bYe gOoD:beTTEr' | sed -E 's/[a-z]+/\L\u&/Ig'
Hello:Bye Good:Better

# lowercase first character of a word
# and uppercase rest of the word characters
$ echo 'HeLLo:bYe gOoD:beTTEr' | sed -E 's/[a-z]+/\U\l&/Ig'
hELLO:bYE gOOD:bETTER

Video demo:


info See also my CLI text processing with GNU sed ebook.