Ozil, who has scored eight goals in 33 internationals, is one of Germany's most creative players and has had a successful season with Real Madrid.
Low, who said Ozil's technical skills had improved since he joined Real in 2010 and he was now a more mature and confident player, made it clear that the 23-year-old could be even better.
"There always things you can work on, improve as a player. I think he has played many games this season on a very consistent level... I think he has the ability to become even more of a goal threat with his wonderful shot and skills.
"Overall, I think there is room for improvement in his goalscoring abilities," Low told a news conference.
Nine of Germany's players have not appeared in a World Cup or European Championship.
"That is something else. One cannot know ahead of time how a relatively young player will react in such a situation. But we have a young team and I have often said that I like youth and dynamism," he said, adding that he had the experience to tell the young players what to do.
"If they have quality and the conditioning, that's worth more than a lot of experience."
