Some of the technology may even be placed inside of the soldiers' bodies.

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"Twenty-five years from now, we may be to the point where the sensors are embedded in the skin and the person becomes the processor," Lovell said.

The company MC10 is already building "conformable electronics," which mesh with a person's skin much like temporary tattoos. These electronics contain sensors that can monitor data from the brain, muscles, heart as well as other biometric information.

Although the company is in the process of applying to work on TALOS, it already has military partnerships, including a project it is about to begin with the Air Force where it will put patches inside clothing that will monitor things such as indicators of stress and fatigue, said Barry Ives, director for MC10's advanced programs and military.

The company also uses its flexible, ultra-thin electronics to make solar panels that can be embedded into clothing. It has partnered with the Army to test the flexible energy harvesters, which are placed on soldiers' helmets, rucksacks and other gear. The goal is to create enough energy to power soldiers' devices when they're in the field.

But whether these types of flexible electronics are embedded in the skin, or in a soldier's clothing, it's clear that new technology like this is going to be used.

"As you look out 25 years, I'm not sure we know or will even recognize the things that will come out," Lovell said. "But I think a lot of the new science—the quantum computing, lower power devices and advanced sensors—they are going to continue to change the game."

—By CNBC's Cadie Thompson.