Executive Insight

The automotive industry is undergoing its most profound transformation since the invention of the assembly line. Electric vehicles, autonomous driving systems, and connected mobility are reshaping how cars are designed, manufactured, and experienced. At the heart of this revolution lies a new kind of fuel: intellectual property and operational data.

From CAD models and simulation results to over-the-air (OTA) updates and telematics logs, data now drives automotive innovation. But as collaboration with Tier-1, Tier-2, and Tier-3 suppliers
expands globally, and as vehicles themselves become rolling data centers, the exposure of sensitive information threatens both competitive advantage and public safety.

This white paper examines where automotive IP is most vulnerable, why traditional tools fall short, and how a data-centric security strategy can safeguard critical assets across the value chain.

Innovation on Wheels: Why Automotive IP is More Valuable (and Vulnerable) Than Ever

The automotive industry is no longer defined by steel, engines, and assembly lines. Today’s vehicles are software-driven, connected, and continuously updated. Electric powertrains, autonomous
features, and OTA services have turned data into the real engine of innovation.

That transformation raises the stakes. Intellectual property (IP), including design blueprints, embedded software, calibration data, and AI models, has become both the industry’s most valuable asset and its most exposed. These files travel daily through global R&D hubs, multi-tier suppliers, dealer networks, and into connected vehicles. Each transfer introduces risks of unintentional data
loss, misuse, or theft.

The automotive sector exemplifies this tension, but it is not alone in facing it. Any industry with global supply chains and heavy R&D faces the same dilemma: collaborate fast without losing control of proprietary data. Traditional perimeter security, such as firewalls and VPNs, protects networks and devices, but not the files once they are shared. Companies must now redefine how they protect these assets, addressing not only external attackers but also accidental exposure, insider risk, and unauthorized use.

The Exposure Map: Where Automotive IP Risks Emerge

The first step in protecting automotive IP is to understand where it travels and where control can be lost. From early design to supplier collaboration and connected services, each data exchange creates risks beyond the reach of IT controls.

Concept & Design Stages Under Global Collaboration

The earliest stages of vehicle development produce some of the most sensitive assets: CAD drawings, embedded software modules, and specifications for batteries, advanced driver-assistance
systems (ADAS), and infotainment. These files rarely remain in one place. They circulate daily across global R&D centers, contractors, and offshore partners. This collaboration is essential, but it also marks the first point where risk enters.

Once these assets leave the company’s secured environment, visibility and control are lost. Files can be duplicated, forwarded, or stored with no trace or alert, often without anyone noticing. Unauthorized redistribution, improper handling, or even accidental oversharing can lead to irreversible IP exposure long before a single vehicle reaches production.

Complex Supply Chains and Tiered Supplier Networks

Automotive manufacturing relies on one of the most complex supply chains in any industry. A single vehicle may require 20,000 to 30,000 individual parts sourced from multiple tiers of suppliers, making visibility and control across the supply chain especially challenging. These range from traditional mechanical systems like chassis and suspension to software-driven modules (e.g., Electronic Control Units (ECUs), sensors, and battery packs), and AI systems that train models for autonomous driving, predictive maintenance, and in-vehicle inference engines.

Regulations such as ISO/SAE 21434 and UN R155/156 mandate cybersecurity and secure update processes across the supply chain, but compliance remains uneven. Global Tier-1s may follow strict protocols, yet many smaller subcontractors lack the capacity to do so. The result: a single leak or software flaw in a minor component can escalate into costly recalls and lasting reputational damage for the OEM.

Common issues across supplier tiers include:

• Tier-1 suppliers: Module integrators and system providers receive full specifications and proprietary calibration data. Many rely on contracts and NDAs rather than technical safeguards. The result is that sensitive files might be copied or forwarded without the OEM’s knowledge.
• Tier-2 suppliers: Subcontractors producing specialized components, electronics, and software often gain indirect access through inherited workflows. OEMs typically lack clear visibility into which partners hold which data.
• Tier-3 suppliers: Smaller vendors for raw materials and foundational components often lack formal security programs or dedicated IT teams, increasing exposure to phishing, ransomware, and accidental data exposure.
• Across all tiers: Once design drawings, software packages, or calibration files leave the OEM’s secure perimeter, consistent enforcement becomes challenging. Contractual obligations rarely translate into technical control, leaving critical IP exposed throughout the supply chain.