Current champions Bayern - now under the guidance of former Barcelona boss Pep Guardiola - are arguably the dominant force in football after becoming the first German team to win a league, cup and European treble.
Despite finishing a distant second, Low believes that Dortmund - who also lost the Champions League final at Wembley - are the only club who can compete with the Bavarian giants.
"I think only Borussia Dortmund are strong enough to match Bayern this season," the 53-year-old told Bild.
"Schalke have a good squad and maybe Stuttgart or Leverkusen could be up there.
"There could be one or two surprise packages, but I can only see a two-horse race at the top."
The Bundesliga gets underway this weekend, with Bayern taking on Borussia Monchengladbach and Dortmund facing Augsburg.