How the Automotive Industry Can Secure Smart Factories, Warehouses, and Connected Vehicles Today

As the auto industry evolves into a highly connected, data-driven ecosystem, manufacturers face a dual challenge: defending against increasingly sophisticated cyberattacks while scaling global operations securely and cost-effectively.

Vehicles are now digital platforms. Smart factories and warehouses run on Internet of Things (IoT) technologies. And across the growing attack surface, intellectual property (IP), customer safety, and operational continuity are all on the line.

It’s no surprise that attackers are taking notice. In 2024 alone, 36% of all cyberattacks targeted the manufacturing sector. For automakers, this means daily battles against ransomware, IP theft, and lateral movement across supply chains. Each attempt represents the potential for huge financial losses, operational downtime, increased risk to consumers, and damage to brand trust.

To stay competitive, global automakers must balance innovation with security—protecting the digital backbone of their business while enabling growth across factories, warehouses, and vehicles.

Looking for more information on how the automotive industry can secure itself in today’s digital age? Our whitepaper offers a detailed look at the challenges and solutions. Get it free here.

The cybersecurity challenges facing automotive innovation

Automotive didn’t become a top choice for cyberattackers at random. Manufacturing is heavily reliant on IoT devices that enable advanced communication and collaboration with operational technology (OT) systems but also expand the attack surface. With IoT malware attacks rising 45% in recent years, it’s clear automotive is attractive to threat actors.

The industry’s complicated business dealings make it more vulnerable to supply chain attacks, adding to the risk automakers face. Attackers use the complexity to stay invisible, frequently disguising their actions as legitimate, privileged activity. This enables them to move laterally from supplier systems or breached internal systems to the next step in the chain. Unfortunately, legacy solutions like firewalls and virtual private networks (VPNs) are not effective at preventing illicit movement as the gaps attackers exploit grow via an expanded attack surface.

Consumers also shoulder risk when automakers fall victim to cyberattacks. Most cars rolling off the assembly line today are connected to an ecosystem of connected systems—to the point the modern automotive sector accounts for some 26% of cellular IoT connections globally. A successful breach can impact everything from in-car experiences and telemetry features to full vehicle operations.

The cost of these attacks is staggering. In just two years, the estimated financial impact of cyberattacks on the automotive industry surged from $1 billion in 2022 to $22.5 billion in 2024. 

This includes:

• $20 billion in data leakage
• $1.9 billion in system downtime
• $538 million in ransomware-related damages

And those are just the direct losses. Broader effects, such as production shutdowns that can cost millions of dollars per hour and disruption of the entire innovation pipeline can jeopardize an automaker’s ability to stay competitive in a fast-moving market.

How to build a resilient automotive ecosystem with zero trust

The scale, speed, and complexity of modern automaking require a cybersecurity strategy that does more than just defend the perimeter. Zero trust offers a dynamic, identity- and context-aware approach to securing operations—built for today’s connected factories, warehouses, vehicles, and cloud services.

Here’s what that looks like in practice for key roles across the automotive landscape.

What is zero trust?

Zero trust is a cybersecurity framework that verifies every connection, device, and user who wants access to a resource in your network. It applies a “never trust, always verify” approach to granting such access. Rather than granting blanket access, zero trust continuously verifies every user, device, and workload—no matter where they’re connecting from.

This approach allows organizations to move beyond traditional perimeter-based defenses and secure complex, distributed ecosystems like smart factories, connected vehicle platforms, and hybrid cloud environments.

Core capabilities include:

• Microsegmentation to limit lateral movement
• Identity-first access controls for users, devices, and services
• Real-time visibility into all traffic and access attempts
• Dynamic policy enforcement across cloud and on-prem environments
• Encrypted communication and authentication secure sensitive data in transit from systems and users

Let’s examine a few of the capabilities that translate into real-world protections for smart factories and connected vehicles.

How does zero trust enhance smart factory operations?

Smart factories depend on IoT, automation, and real-time collaboration. But these same systems introduce entry points for attackers. Zero trust enforces strict access controls and isolates workloads to protect uptime, worker safety, and intellectual property.

Here’s how it applies in practice:

• Microsegmentation: Breaks factory networks into isolated zones. If one robotic system or PLC is compromised, it cannot be used as a launchpad to access adjacent machines or OT systems—protecting production uptime and worker safety.
• Real-time visibility into all traffic and access attempts: Platforms like Zscaler give process engineers and IT teams a live view of data flows and system interactions. This allows for faster root-cause diagnostics, early anomaly detection, and stronger process control.

Together, these zero trust controls help manufacturers protect intellectual property, maintain operational continuity, and scale smart operations with confidence.

How does zero trust secure connected vehicle ecosystems?

Zero trust allows for the encryption of all connected data streams, including telemetry and over-the-air update systems, keeping sensitive information safe from interception or tampering. Today’s vehicles operate as software-defined, cloud-connected platforms. Securing this ecosystem—telemetry, APIs, OTA updates, and cloud services—requires a dynamic approach that adapts to evolving threats.

Here’s how zero trust principles safeguard the connected vehicle lifestyle:

• Encrypted communication and authentication: All in-vehicle data streams—from telemetry to OTA updates—are encrypted and validated before transmission. This prevents tampering and protects driver safety and in-car experiences.
• Microsegmentation: Prevents cross-system contamination within the vehicle itself. For example, a breach in the infotainment system cannot spread to core vehicle control modules or sensor systems.

Zero trust gives automakers the tools to secure software-defined vehicles, build resilient digital platforms, and earn consumer trust—all while accelerating innovation in electrification and autonomy.

How does zero trust support compliance in the automotive industry?

Automotive manufacturers must navigate a fast-evolving regulatory landscape, meeting standards like ISO 21434, TISAX, UNECE WP.29, and region-specific privacy and cybersecurity mandates. Achieving compliance requires more than reactive checklists. It demands proactive, built-in security controls that are consistent, scalable, and verifiable across every layer of the organization.

Zero trust helps manufacturers operationalize compliance by embedding security into everyday processes and enabling visibility and enforcement at every access point.

Here’s how:

• Identity-first access controls for users, devices, and services: Ensures only authenticated and authorized users or systems can interact with sensitive vehicle data, design environments, or manufacturing IP. This supports data minimization, least privilege, and traceability—core principles across most global compliance frameworks.
• Encrypted communication and authentication: Protects sensitive data in transit between suppliers, cloud platforms, and factory systems, ensuring that compliance requirements for data integrity and confidentiality are met at every stage of the supply chain.

With zero trust, compliance becomes a byproduct of good architecture, not a bolt-on task. It gives automakers the visibility, control, and confidence to meet current regulations and adapt quickly to new ones as global standards evolve.

Drive the future of automotive innovation with zero trust

Ransomware, IoT/OT vulnerabilities, and an ever-growing attack surface are just three examples of the operational risks automakers face. By rethinking what a digital perimeter should look like and how it should behave, zero trust and associated practices like microsegmentation and encrypted communication help mitigate these risks.

Download our whitepaper for in-depth, actionable guidance on:

• How to secure your auto company’s growth. Learn how zero trust empowers automotive leaders to protect connected vehicles, secure manufacturing systems, and safeguard supply chains.
• Real-world strategies used by top automakers. See how successful manufacturers are adopting identity-first policies, microsegmentation, and role-based access controls to overcome today’s most pressing cyber challenges.
• How to take control of your digital future. Find practical recommendations on how zero trust supports compliance efforts, ensures operational resilience, and accelerates innovation in electrification and autonomous driving.

Get the whitepaper for free here.