The research, published in medical journal Lancet, looked at 17 European countries over the past 25 years and found a worrying rise in cases that is predicted to continue over the next decade.
Based on the current trend, cases of type one diabetes in under fives could increase by 50 per cent and by as much as 70 per cent in children under 15-years-old.
The Lancet states: "Many more children will need access to health care services, a useful point for health policy makers to note."
The jury is still out as to the reason for the rise of type one diabetes beyond a genetic link, according to Diabetes UK director of research Dr Iain Frame.
He said: "Having a family history of diabetes increases a person's risk of developing the condition. However, the increase is too steep to be put down to just genetic factors, so it must be due to other environment factors."
Other research has suggested there may be a link between caesarean section births and type one diabetes.
Dr Frame added: "A lot more research is needed before we can come to any concrete conclusions about the causes of this rise in type one diabetes in younger children."
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