This paper explores new sensor technologies and their integration within Connected Autonomous Vehicles (CAVs) for real-time road condition monitoring. Sensors like accelerometers, gyroscopes, LiDAR, cameras, and radar that have been made available on CAVs are able to detect anomalies on roads, including potholes, surface cracks, or roughness. This paper also describes advanced data processing techniques of data detected with sensors, including machine learning algorithms, sensor fusion, and edge computing, which enhance accuracy and reliability in road condition assessment. Together, these technologies support instant road safety and long-term maintenance cost reduction with proactive maintenance strategies. Finally, this article provides a comprehensive review of the state-of-the-art future directions of condition monitoring systems for traditional and smart roads.