BRUSSELS (Reuters) - The chief executive of Airbus said on Tuesday that Europe's space industry needs to restructure and consolidate in the face of private U.S. competition and investments in China and elsewhere.

"We are fragmented in a world where some giants have emerged, especially in the U.S. but not only; they are also growing in China," Guillaume Faury told a news conference.

Airbus and Thales Alenia Space, which includes France's Thales and Italy's Leonardo, have said they are in early talks on a possible tie-up of satellite activities.

Micael Johansson, CEO of Swedish defence firm Saab, said European nations needed to collaborate more on defence and buy more from European suppliers.

He said Europe was facing a “make or break” moment on defence.

Both executives were speaking on the sidelines of a meeting of European aerospace and defence lobby ASD Europe.

Defence has surged up Europe's political agenda due to Russia's 2022 invasion of Ukraine and fears that Washington may cut commitments to European security, particularly after Donald Trump was elected for a second term as U.S. president.

EU defence spending has increased by 31% since 2021 and is expected to reach 326 billion euros ($344.42 billion) in 2024, according to figures from the European Defence Agency released on Tuesday.

That figure represents 1.9% of the European Union's gross domestic product and many European and U.S. officials have argued Europe will need to spend more.

($1 = 0.9465 euros)

(Reporting by Tim Hepher and Andrew Gray; Editing by Kevin Liffey and Susan Fenton)