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.
Unlike several of his team-mates Ozil has experience of major tournaments, having played in the 2010 World Cup.
Nine of Germany's players have not appeared in a World Cup or European Championship.
Low said it was difficult to predict how the newcomers would cope with the sort of pressure Germany faced in the opening rounds of Euro 2008 and the last World Cup, when they lost the second game on both occasions.
"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."
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