Applying the framework of the seven functions of an innovation system to assess the impact of the European Green Deal on the Single Market’s industrial ecosystems reveals substantial transformations. These changes are fuelled by the R&I projects funded under selected calls of Horizon 2020 and Horizon Europe and pave the way to a ‘Single Market 2.0’. The technologies developed in this context offer a promising outlook for the future of the Single Market but, with few exceptions, have low to medium market readiness levels. A thorough evaluation of their impact will necessitate additional time, data and research. The long-term success of these technological developments also hinges on the capacity to overcome high implementation costs, structural disparities among the Member States, social acceptance and the ability to build stronger synergies between industrial, competitiveness and innovation policies.