Stuart Lancaster's side, who narrowly missed out on clinching this year's Six Nations, are the host country for the tournament next summer.
Carter, who helped the All Blacks lift the trophy in 2011, believes that England will be lifted by staging the competition.
"In every World Cup I've been involved in, the host nation is always a team to look out for," he is quoted as saying by Sky Sports News.
"The way they are building, they will definitely be there and thereabouts."
England travel to New Zealand this summer for a three-Test series.