Amid relatively low expectations coming into Euro 2012, the 64-year-old's Three Lions squad managed to top Group D and reach the quarter-finals where they lost on penalties to Italy.
And despite some criticism about the defensive set up of the team, Low insists that the country is moving in the right direction and that the former West Brom and Liverpool boss is the perfect man to make improvements.
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When asked why he thought England hadn't reached the last four, Low told the Independent: "I don't know why. It's hard to answer.
"The English were much better in this tournament than in 2010.
"When they played us then, they were a team who had a lot of problems. They were a very well organised team [at Euro 2012]. Roy Hodgson has brought order into the side and has done a great job.
"England will develop under him in the next few years and, in the next tournament, they'll play a better role than they did here and certainly than they did in 2010."
Low's side face Italy in the semi-final on Thursday night, as they look to book their place in the final alongside title holders Spain.