Dieter Hecking’s side finished second in the Bundesliga this season before seeing off Dortmund 3-1 on Saturday to claim the German cup.
And after years of dominance from Bayern and Dortmund, Low believes Wolfsburg are ready to squeeze out BVB and become Germany’s second team.
"Wolfsburg has the potential to become the second force behind Bayern,” Low told Bild.
Wolfsburg sporting director Klaus Allofs added that the club's target for next season is to close the gap on Pep Guardiola's side.
“We want to move in the direction of Bavaria, which is a major challenge,” he said. “Add this title the club has taken, we are now runners-up and cup winners.”
Wolfsburg ended the season 10 points behind Bayern and handed Guardiola’s side their heaviest league defeat in six years with a 4-1 victory over the champions in January.