Leading aircraft manufacturer Boeing has predicted a sharp rise in demand for new passenger and cargo planes over the next 20 years.

It is expecting to see orders for another 35,000 planes come in over the coming two decades, costing a staggering $4.8 trillion (£3.06 trillion).

Boeing released its latest Current Market Outlook report at the Paris Air Show, in which it speculated that air passenger and cargo traffic would both increase by five per cent annually over the next 20 years, which explains why so many extra aircraft are needed.

The company also highlighted a growing desire among airlines for more efficient planes and the demand for single-aisle models will be particularly high.

A recent study by TalkTalk showed that retailers are currently bemoaning rising air freight costs, but this is clearly not deterring carriers from ordering new planes.

Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said: "This forecast gives us confidence as we increase our production rates and invest in new products like the 777X and 787-10X."