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Traffic state identification is a key problem in intelligent transportation system. As a new technology, connected and automated vehicle can play a role of identifying traffic state with the installation of onboard sensors. However, research of lane level traffic state identification is relatively lacked. Identifying lane level traffic state is helpful to lane selection in the process of driving and trajectory planning. In addition, traffic state identification precision with low penetration of connected and automated vehicles is relatively low. To fill this gap, this paper proposes a novel method of identifying traffic state in the presence of connected and automated vehicles with low penetration rate. Assuming connected and automated vehicles can obtain information of surrounding vehicles’, we use the perceptible information to estimate imperceptible information, then traffic state of road section can be inferred.